WORLD TRADE  
ORGANIZATION  TN/AG/W/4/Rev.1 
8 February 2008 
 (08-0611) 
Committee on Agriculture 
Special Session  
 
 
 
REVISED DRAFT MODALITIES FOR AGRICULTURE 
Revision  
 This document reflects changes to the modalitie s intending to reflect the negotiation process. 
 
 
 TN/AG/W/4/Rev.1 
Page 2  
 
  I. DOMESTIC SUPPORT 
A. OVERALL REDUCTION OF TRADE -DISTORTING DOMESTIC SUPPORT : A TIERED FORMULA  
Base level 
1. The base level for reductions in Overall Trade-Distorting Domestic Support (hereafter "Base 
OTDS") shall be the sum of: 
(a) the Final Bound Total AMS specified in Pa rt IV of a Member's Schedule;  plus 
(b) for developed country Members, 10 per cent of  the average total value of agricultural 
production in the 1995-2000 base period (thi s being composed of 5 per cent of the 
average total value of production for product-specific and non-product-specific AMS 
respectively);  plus 
(c) the higher of average Blue Box payments as notified to the Committee on 
Agriculture, or 5 per cent of the average to tal value of agricultural production, in the 
1995-2000 base period. 
2. For developing country Members, item (b) of pa ragraph 1 above shall be 20 per cent of the 
average total value of agricultural producti on in the 1995-2000 or 1995-2004 period as may be 
selected by the Member concerned.  For devel oping country Members, the base period for the 
purposes of item (c) of paragraph 1 above shall be  1995-2000 or 1995-2004 as may be selected by the 
Member concerned.  
Tiered reduction formula 
3. The Base OTDS shall be reduced in accord ance with the following tiered formula: 
(a) where the Base OTDS is greater than US $60 billion, or the equivalent in the 
monetary terms in which the binding is expressed, the reduction shall be [75] [85] per cent; 
(b) where the Base OTDS is greater than US $10 billion and less than or equal to 
US$60 billion, or the equivalents in the monetary terms in which the binding is 
expressed, the reduction shall be [66] [73] per cent; 
(c) where the Base OTDS is less th an or equal to US$10 billion, or the equivalent in the 
monetary terms in which the binding is e xpressed, the rate of reduction shall be 
[50] [60] per cent. 
4. Developed country Members with high relative le vels of Base OTDS in the second tier (i.e. at 
least 40 per cent of the average total value of agricultural production in the 1995-2000 period) shall 
undertake an additional effort.  The additional reduction to be undertaken shall be equal to one half of 
the difference between the reduction rates speci fied in paragraphs 3(a) and 3(b) above.  TN/AG/W/4/Rev.1 
 Page 3 
 
 
  Implementation period and staging 
5. For developed country Members, the reductions shall be implemented in six steps over five 
years. 
(a) For Members in the first two tiers specified  in paragraphs 3(a) and 3(b) above, the 
Base OTDS shall be reduced by one-third on the first day of implementation.  The 
remaining reductions shall be implemen ted annually in five equal steps. 
(b) For Members in the third tier specified in paragraph 3(c) above, the Base OTDS shall 
be reduced by 25 per cent on the first day of implementation.  The remaining 
reductions shall be implemented annually in five equal steps. 
Special and differential treatment 
6. Developing country Members with no Final B ound Total AMS commitments shall not be 
required to undertake reduction commitments in their Base OTDS. 
7. For developing country Members with Final B ound Total AMS commitments, the applicable 
reduction in the Base OTDS shall be two-thirds of the relevant rate specified in paragraph 3(c) above.  
However, net food-importing developing countries  (hereafter "NFIDCs") listed in document 
G/AG/5/Rev.8 shall not be required to undert ake reduction commitments in their Base OTDS. 
8. For developing country Members, the reductions  shall be implemented in nine steps over 
eight years.  The Base OTDS shall be reduced by 20 per cent on the first day of implementation.  The 
remaining reductions shall be implemen ted annually in eight equal steps. 
Recently-Acceded Members 
9. Saudi Arabia, the Former Yugoslav Republic of  Macedonia and Viet Nam, as very recently-
acceded Members (hereafter "RAMs") shall not be required to undertake reduction commitments in their Base OTDS.  Small low-income RAMs with economies in transition
1 shall not be required to 
undertake reduction commitments in their Base OTDS.  Reduction commitments for other RAMs 
with Final Bound Total AMS commitments shall be two-thirds of the relevant rate specified in 
paragraph 3(c) above and shall be  implemented in accordance with the provisions in paragraph 8 
above. 
Other commitments 
10. All Members other than least-developed country  Members shall schedule their Base, Annual 
and Final Bound OTDS entitlements, as provided above, in monetary terms, in Part IV of their 
Schedules.  Developing country Members that are not required to undertake reduction commitments  
under any of the provisions of these modalities shall only be required to schedule their Base OTDS. 
11. For those Members that, under these modalities are subject to reduction  commitments  in their 
Base OTDS, such commitments shall apply as a minimum overall commitment.  Throughout the 
implementation period and thereafter, each Member sha ll ensure that the sum of the applied levels of 
trade-distorting support under each OTDS compone nt does not exceed the Annual and Final Bound 
OTDS levels specified in Part IV of its Schedule. 
                                                        
1 This shall be applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova. TN/AG/W/4/Rev.1 
Page 4  
 
  12. The Agreement on Agriculture shall be ame nded in order to provide for these OTDS 
modalities including amendments to existing Articles, wh ere necessary, to ensure consistency with the 
above provisions. 
B. FINAL BOUND TOTAL AMS:   A TIERED FORMULA  
Tiered reduction formula 
13. The Final Bound Total AMS shall be reduced  in accordance with the following tiered 
formula: 
(a) where the Final Bound Total AMS is greater than US$40 billion, or the equivalent in 
the monetary terms in which the binding is expressed, the reduction shall be 
70 per cent; 
(b) where the Final Bound Total AMS is greater  than US$15 billion and less than or 
equal to US$40 billion, or the equivalents in the monetary terms in which the binding 
is expressed, the reduction shall be 60 per cent; 
(c) where the Final Bound Total AMS is less than or equal to US$15 billion, or the 
equivalent in the monetary terms in which the binding is expressed, the rate of 
reduction shall be 45 per cent. 
14. Developed country Members with high relative le vels of Final Bound Total AMS (i.e. at least 
40 per cent of the average total value of agricultural production during the 1995-2000 period) shall undertake an additional effort in the form of a highe r cut than would otherwise be applicable for the 
relevant tier.  Where the Member concerned is in the second tier, the additional reduction to be 
undertaken shall be equal to the difference between the reduction rates specified  in paragraphs 13(a) 
and 13(b) above.  Where the Member concerned is in the bottom tier, the additional reduction to be 
undertaken shall be one half of the difference betw een the reduction rates specified in paragraphs 
13(b) and 13(c) above. 
Implementation period and staging 
15. For developed country Members, reductions in Final Bound Total AMS shall be implemented 
in six steps over five years.  For developed co untry Members in the top two tiers specified in 
paragraphs 13(a) and 13(b) above , such reductions shall be implemented by means of a first 
instalment of a [25] per cent reduction on the first da y of implementation, followed by reductions in 
equal annual instalments over five years.  For ot her developed country Members, the reductions shall 
be implemented in six equal a nnual instalments over five years, commencing on the first day of 
implementation. 
Special and differential treatment 
16. The reduction in Final Bound Total AMS applicab le to developing country Members shall be 
two-thirds of the reduction applicable for devel oped country Members under paragraph 13(c) above.  
The reductions in Final Bound Tota l AMS shall be implemented in ni ne equal annual instalments over 
eight years, commencing on the first day of implementation. 
17. NFIDCs listed in document G/AG/5/Rev.8 sha ll not be required to undertake reduction 
commitments in their Final Bound Total AMS.  TN/AG/W/4/Rev.1 
 Page 5 
 
 
  18. Developing country Members shall continue to have the same access to the provisions of 
Article 6.2 of the Agreement on Agriculture as under their respective existing WTO obligations. 
Recently-Acceded Members 
19. Saudi Arabia, the Former Yugoslav Republic of  Macedonia and Viet Nam, as very recently-
acceded Members shall not be required to undertake reduction commitments in their Final Bound Total AMS.  Small low-income RAMs with economi es in transition shall not be required to undertake 
reduction commitments in their Final Bound Total AMS.
2  In the case of such Members, investment 
subsidies which are generally available to agricu lture, agricultural input subsidies and interest 
subsidies to reduce the costs of financing , as well as grants to cover debt repayment , may be excluded 
from the calculation of the Current Total AMS.3  The reductions in Final Bound Total AMS for other 
RAMs with such commitments shall be two-thirds of  the rate specified in paragraph 13(c) above and 
shall be implemented in accord ance with paragraph 16 above. 
Other  
20. Article 18.4 of the Agreement on Agriculture sha ll continue to apply in order to respond to 
the situations referred to in that provision. 
C. PRODUCT -SPECIFIC AMS  LIMITS  
General 
21. Product-specific4 AMS limits shall be set out in terms of monetary value commitments in 
Part IV of the Schedule of the Member concerne d in accordance with terms and conditions specified 
in the paragraphs below. 
22. The product-specific AMS limits specified in  the Schedules of all developed country 
Members other than the United States shall be th e average of the product-specific AMS during the 
Uruguay Round implementation pe riod (1995-2000) as notified to the Committee on Agriculture . 
23. For the United States only, the product-specific AM S limits specified in their Schedule shall 
be the resultant of applying proportionately the average product-specific AMS in the [1995-2004] 
period to the average product-specific total AMS support for the Uruguay Round implementation 
period (1995-2000) as notified to the Committee on Agriculture. 
24. Where a Member has, after the base period specified in  paragraphs 22 and 23 above, 
introduced product-specific AMS support above the de minimis  level provided for under Article 6.4 of 
the Uruguay Round Agreement on Agriculture, and it did not have product-specific AMS support 
above the de minimis  level during the base period, the product-specific AMS limit specified in the 
Schedule may be the average amount of such product-specific AMS support for the two most recent years prior to the date of adoption of these moda lities, for which notifications to the Committee on 
Agriculture have been made. 
                                                        
2 This shall be applicable to Moldova which is the only such Member with a Final Bound Total AMS. 
3 This shall be applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova. 
4 "Product-specific" commitments have the same meaning as they are used in the Uruguay Round Agreement 
on Agriculture.  TN/AG/W/4/Rev.1 
Page 6  
 
  25. In cases where the product-specific AMS s upport for each year during the base period 
specified in paragraphs 22 and 23 above was below the de minimis  level provided for under 
Article 6.4 of the Uruguay Round Agreement on Agricu lture and the Member concerned is not in the 
situation covered by paragraph 24  above, the product-specific AMS limit specified in the Schedule for 
the product concerned may be that de minimis  level, expressed in monetary terms. 
26. The scheduled product-specific AMS limits shall be implemented in full on the first day of 
the implementation period.  Where the average notif ied product-specific AMS in the two most recent 
years for which notifications are available was high er, the limits shall be implemented in three equal 
annual instalments, with the starting point for impl ementation being the lower of the average of those 
two years or 130 per cent of the scheduled limits. 
Special and differential treatment 
27. Developing country Members shall establish th eir product-specific AMS limits by choosing 
one of the following methods, and scheduling a ll their product-specific AMS commitments in 
accordance with the method chosen: 
(a) the average product-specific AMS during th e base period 1995-2000 or 1995-2004 as 
may be selected by the Member con cerned, as notified to the Committee on 
Agriculture; or 
(b) two times the Member's product-specific de minimis  level provided for under Article 
6.4 of the Uruguay Round Agreement on Agriculture during the base periods referred 
to in sub-paragraph (a) above; 
(c) 20 per cent of the Annual Bound Total AMS in  the relevant year during the Doha 
Round implementation period.  
28. Where a developing country Member chooses paragraph 27(a) above as its method for the 
establishment of product-specific AMS limits that Memb er shall also have access to the provisions of 
paragraphs 24 and 25 above. 
29. Article 6.3 of the Agreement on Agriculture shall be amended to reflect these modalities. 
D. DE MINIMIS  
Reductions 
30. The de minimis  levels referred to in Article 6.4(a)  of the Uruguay Round Agreement on 
Agriculture for developed country Members (i.e. 5 pe r cent of a Member's total value of production of 
a basic agricultural product in the case of product-specific de minimis  and 5 per cent of the value of a 
Member's total agricultural productio n in the case of non-product-specific de minimis )5 shall be 
reduced by no less than [50] [60] per cent [effec tive on the first day of the implementation period] 
[through five equal annual instalment s].  Furthermore, where, in any year of the implementation 
period, a lower level of de minimis  support than that resulting from application of that minimum 
percentage reduction would still be required to ensure that the Annual or Final Bound OTDS 
                                                        
5 Where a Member makes use of the additional flexibilities under paragraphs 24 and 25 above to obtain 
product-specific AMS entitlements that it would not otherwise secure through the general base period, the corresponding product-specific de minimis  entitlement that would otherwise have accrued to that Member through the 
general base period shall be deducted from that de minimis  base for reduction commitments, thereby avoiding double 
counting.  TN/AG/W/4/Rev.1 
 Page 7 
 
 
  commitment for that year is not exceeded, a Memb er shall undertake such an additional reduction in 
what would otherwise be its de minimis  entitlement. 
Special and differential treatment 
31. For developing country Members with Final Bound Total AMS commitments, the de minimis  
levels referred to in Article 6.4(b) of the Ur uguay Round Agreement on Agricu lture (i.e. 10 per cent 
of a Member's total value of production of a basi c agricultural product in the case of product-specific 
de minimis  and 10 per cent of the value of a Member's total agricultural production in the case of non-
product-specific de minimis )5 to which they have access under their existing WTO obligations shall be 
reduced by at least two-thirds of the reduction ra te specified in paragraph 30 above.  The timeframe 
for implementation shall be three years longer than that for developed country Members.  
Furthermore, where, in any year of th e implementation period, a lower level of de minimis  support 
than that resulting from application of that minimu m percentage reduction would still be required to 
ensure that the Annual Bound or Final OTDS comm itment for that year is not exceeded, a Member 
shall undertake such an additional reducti on in what would otherwise be their de minimis  entitlement. 
32. Developing country Members with no Final B ound Total AMS commitments; or with such 
AMS commitments, but that either allocate almost  all that support for subsistence and resource-poor 
producers, or that are NFIDCs listed in document G/AG/5/Rev.8; shall continue to have the same 
access as under their existing WTO obligations to the limits provided for product-specific and non-
product-specific de minimis  in Article 6.4(b) of the Uruguay Round Agreement on Agriculture. 
Recently-Acceded Members 
33. Saudi Arabia, the Former Yugoslav Republic of  Macedonia and Viet Nam, as very recently-
acceded Members shall not be required to undertake reduction commitments in de minimis .  Small 
low-income RAMs with economies in transition6 shall not be required to undertake reduction 
commitments in de minimis .  Other RAMs with Final Bound Total AMS commitments and which 
have existing de minimis  levels of 5 per cent shall reduce such  levels by at least one-third of the 
reduction rate specified in  paragraph 30 above and the timefram e for implementation shall be five 
years longer. 
Other 
34. The provisions of Article 6.4 of the Uruguay Round Agreement on Agriculture shall be 
amended accordingly to c onform to these modalities. 
E. BLUE BOX 
Basic criteria 
35. The value of the following domestic support, provide d that it is consistent also with the limits 
as provided for in the paragraphs below, shall be excluded from a Member's calculation of its Current 
Total AMS: 
(a) Direct payments under production-limiting programmes if: 
(i) such payments are based on fixed and unchanging areas and yields; or 
                                                        
6 This shall be applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova. TN/AG/W/4/Rev.1 
Page 8  
 
  (ii) such payments are made on 85 per cent or less of a fixed and unchanging 
base level of production; or 
(iii) livestock payments are made on a fi xed and unchanging number of head. 
Or 
(b) Direct payments that do not require production if: 
(i) such payments are based on fixed and unchanging bases and yields; or 
(ii) livestock payments are made on a fixe d and unchanging number of head; and 
(iii) such payments are made on 85 per cent or less of a fixed and unchanging 
base level of production. 
36. Each Member shall specify in its Schedule which of these categories – (a) or (b) - it has 
selected for the purposes of establishing all its Blue  Box commitments in this Round.  Any exception 
to this universal application would be with the agreement of all Members prior to finalization of 
Schedules.  In no circumstances could both domestic  support categories be made available for any 
particular product or products . 
37. Any Member that is in a position to move its domestic support from AMS to Blue pursuant to 
paragraph 43 below, or introduce product-specific Bl ue Box support pursuant to  paragraphs 46 and 51 
below subsequent to the conclusion of this negotiati on shall have the option to do so on the basis of 
either criterion above but, once selected and scheduled, this shall be binding.  
Additional criteria 
(a) Overall Blue Box limit 
38. The maximum permitted value of support that can, under the above criteria of "Blue Box" , be 
provided under Article 6.5 shall not exceed 2.5 per cent of the average total value of agricultural 
production in the 1995-2000 base period on the basis of  notifications to the Committee on Agriculture 
where they exist .  This limit shall be expressed in monetary terms in Part IV of Members' Schedules 
and shall apply from the first da y of the implementation period. 
39. In cases where a Member has, consistent with the terms of Article 6.5(a) of the Uruguay 
Round Agreement on Agriculture, placed in the Blue  Box an exceptionally large percentage of its 
trade-distorting support – defined as 40 per cent – during the 1995-2000 base period, the limit for that Member shall, instead, be established by applicatio n of a percentage reduction in that average base 
period amount.  That percentage reduction shall e qual the percentage reduction that the Member 
concerned is to make in its Final Bound Total AM S.  This Blue Box limit shall be expressed in 
monetary terms and bound in Part IV of that Me mber's Schedule.  An implementation period of no 
more than [2] years may be provided for any such Member in the event that immediate 
implementation is unduly burdensome.  TN/AG/W/4/Rev.1 
 Page 9 
 
 
  (b) Product-specific limits 
40. For all Members other than the United States, th e limit to the value of support that may be 
provided to specific products as Blue Box entitlements shall be the average value of support provided 
to those products, consistent with Article 6. 5(a) of the Uruguay Round Agreement on Agriculture, 
during the 1995-2000 period.  These product -specific limits shall be expressed in monetary terms and 
bound in Part IV of the Schedule of the Member c oncerned, and shall apply from the first day of the 
implementation period. 
41. In any case, where Article 6.5(a) consistent  Blue Box support was not provided for the 
entirety of the 1995-2000 period, the Member concerne d shall use the average value of support for the 
years notified within that period, provided that there are at least three consecutive notified years 
within that period. 
42. For the United States, the limits to the value of support that may be provided to specific 
products under paragraph 35( b) above shall be [110] [120] per cent of the average product-specific 
amounts that would result from applying proporti onately the legislated maximum permissible 
expenditure under the 2002 Farm Bill for specifi c products to the overall Blue Box limit of 
2.5 per cent of the average total value of agricu ltural production during the 1995-2000 period.  These 
product-specific limits expressed in monetary terms are annexed as Annex A to these modalities and shall be specified in Part IV of that Member's Schedule.  
43. Blue Box entitlements for specific products may nevertheless exceed the limits determined 
under paragraphs 40-42 above but only where there is a corresponding and irreversible one-for-one 
reduction in the product-specific AMS limits for the products concerned (except for cotton, where that 
rate would be two-for-one). 
44. Where this arises in the context of this par ticular negotiation, full documentation must be 
provided in support of this "transfer" to ensure th at the starting point is verifiably, on the one hand, 
the product-specific AMS limit that would have be en otherwise inscribed in the Schedule through 
application of the methodology prov ided above and, on the other, th e Blue Box entitlement otherwise 
inscribed pursuant to application of the methodology set out above. 
45. Where this arises as a result of continuation of  the reform process after scheduling and during 
the implementation period, there must be an ex act reciprocal reduction in the scheduled product-
specific AMS limit for, as the case may be, a new, or an increase in the scheduled, product-specific 
Blue Box limit.  In both such situations, the overall Blue Box limit cannot in any case be exceeded. 
46. Notwithstanding the above, where there is no product-specific entitlement to a Blue Box limit 
under the provisions above, and no Current AMS suppor t in the base period for a particular product, a 
product-specific Blue Box limit may still be scheduled but only where the total support for any such products concerned does not exceed 5 per cent of th e overall Blue Box limit; there is a maximum for 
any single product of 2.5 per cent; and the overall Blue  Box limit is still respected.  This is available 
to developed country Members with direct pa yments of the kind that meet the terms of 
paragraph 35(a) above, and is a once-only provision  for commitment in this Round of negotiations. 
The monetary value and the products  concerned shall be inscribed in a Member's Schedule.  If it is 
resorted to, the Member concerned shall make also  an equivalent value re duction in its Total AMS 
commitment in addition to what it would have been  otherwise required to undertake according to the 
AMS formula cuts. TN/AG/W/4/Rev.1 
Page 10  
 
  47. [Where a Member's overall Blue Box support in any year is within the scheduled overall Blue 
Box limit, but there is product-specific Blue Box support which is in excess of that Member's scheduled product-specific limit, the support for su ch a product shall be required to be included in its 
entirety (i.e. not just the portion that is in excess of the scheduled limit) in the calculation of the 
Current AMS, provided that the scheduled product-specific AMS as well as the Annual or Final Bound Total AMS limits are not exceeded . 
48. Where a Member's overall Blue Box support in any year is in excess of that Member's 
scheduled overall Blue Box limit, and irrespective of whether the scheduled product-specific Blue 
Box limits are exceeded or not, that su pport shall be required to be included in its entirety (i.e. not just 
the amount by which it exceeds the scheduled limit)  in the calculation of the Current AMS provided 
that the scheduled product-specific AMS as well as th e Annual or Final Bound Total AMS limits are 
not exceeded.] 
Special and differential treatment 
49. For developing country Members, the maximu m permitted value of support referred to in  
paragraph 38 above shall be 5 per cent of the av erage total value of agricultural production in the 
1995-2000 or the 1995-2004 base period as may be selected by the Member concerned.  That limit shall be expressed in monetary terms and bound in Part IV in  developing country Members' 
Schedules.  However, in cases where there is a movement from AMS to Blue subsequent to the 
conclusion of this negotiation, the developing coun try Member concerned shall have the option of 
selecting as its base period the most recent five-year period for which data are at that time available.  
50. Where a product accounted both for more than 25 per cent of the average total value of 
agricultural production and 80 per cent of the av erage Annual Bound Total AMS during the base 
period, a developing country Member that chooses to switch its support from AMS to Blue for that product, on a one-for-one and irreversible basis, sha ll be entitled to do so even if this would otherwise 
lead to exceeding the overall Blue Box limit provided for in the paragraph above. 
51. As regards the provisions in paragraph 46 a bove, where a developing country Member has no 
product-specific entitlement to a Blue Box limit under the above provisions, and no Current AMS support in the base period for a particular produc t, a product-specific Blue Box limit may still be 
scheduled but only where the total support for any such products concerned does not exceed 
7.5 per cent of the overall Blue Box limit; there is  a maximum for any single product of 5 per cent; 
and the overall Blue Box limit is still respected. 
Recently-Acceded Members 
52. For RAMs, the maximum permitted value of suppor t referred to in para graph 38 above shall 
be 5 per cent of the average total value of ag ricultural production in the 1995-2000 base period.  
However, in cases where there is a movement from AM S to Blue subsequent to the conclusion of this 
negotiation, the Member concerned shall have th e option of selecting as its base period the most 
recent five-year period for which data are at that time available. 
Other 
53. Article 6.5 of the Agreement on Agriculture sh all be amended to refl ect the above modalities 
accordingly.  TN/AG/W/4/Rev.1 
 Page 11 
 
 
  F. GREEN BOX 
54. Annex 2 of the Agreement on Agriculture shall be amended as set out in Annex B of this 
document. 
G. COTTON :  DOMESTIC SUPPORT  
Reductions in support for cotton 
55. AMS support for cotton shall be reduced  according to the following formula: 
 Rc = Rg + (100 – Rg) * 100  
   3 * Rg 
 
Rc = Specific reduction applicable to cotton as a percentage Rg = General reduction in AMS as a percentage  
56. This shall be applied to the base value of s upport calculated as the arithmetic average of the 
amounts notified by Members for cotton in supporting tables DS:4 from 1995 to 2000.  The Blue Box 
limit applicable to cotton shall amount to one third of the product-specific limit that would otherwise 
have been the resultant from the me thodology generally applicable above. 
Implementation  
57. The reductions for trade-distorting domestic support on cotton shall be implemented over a 
period which is one third of  the implementation period. 
Special and differential treatment 
58. Developing country Members with relevant AMS and Blue Box commitments for cotton 
otherwise applicable under the relevant provisions of this Agreement shall provi de a  rate of reduction 
for cotton that is two-thirds of that which would be applicable under paragraph 55 above. 
59. Developing country Members shall implement their reduction commitments for cotton over a 
longer time period than for developed country Members. TN/AG/W/4/Rev.1 
Page 12  
 
  II. MARKET ACCESS 
A. TIERED FORMULA FOR TARIFF REDUCTIONS  
Basis for reductions 
60. Subject to such other specific provisions as may be made, all final bound tariffs7 shall be 
reduced using the tiered formula set  out in the paragraphs below. 
61. In order to place final bound non- ad valorem  tariffs in the appropriate band of the tiered 
formula, Members shall follow the methodology to calculate ad valorem  equivalents (AVEs), along 
with associated provisions, set out in Annex A to TN/AG/W/3 of 12 July 2006. All AVEs so 
calculated shall be listed in an annex to these Modalities. 
Tiered formula 
62. Developed country Members  shall reduce their final bound tariffs  in equal annual instalments 
over five years in accordance with  the following tiered formula: 
(a) where the final bound tariff or ad valorem  equivalent is greater than 0 and less than or 
equal to 20 per cent, the reduction shall be [48-52] per cent; 
(b) where the final bound tariff or ad valorem  equivalent is greater than 20 per cent and 
less than or equal to 50 per cent, the reduction shall be [55-60] per cent; 
(c) where the final bound tariff or ad valorem  equivalent is greater than 50 per cent and 
less than or equal to 75 per cent, the reduction shall be [62-65] per cent;  and 
(d) where the final bound tariff or ad valorem  equivalent is greater than 75 per cent, the 
reduction shall be [66-73] per cent. 
63. The minimum average cut on final bound tariffs that a developed country Member shall be 
required to undertake is [54] per cent.  Should application of the tiered formula treatment above, 
inclusive of the treatment for Sensitive Products as outlined in Section B below result in an overall 
average cut less than [548] per cent, an additional effort shall be made proportionately across all bands 
to reach that target. 
64. Developing country Members other than those specified in paragraph 66 below shall reduce 
their final bound tariffs in equal annual instalments over eight years in accordance with the following 
tiered formula: 
(a) where the final bound tariff or ad valorem  equivalent is greater than 0 and less than or 
equal to 30 per cent, the reduction shall be  2/3 of the cut for developed country 
Members in paragraph 62(a)  above; 
(b) where the final bound tariff or ad valorem  equivalent is greater than 30 per cent and 
less than or equal to 80 per cent, the reduc tion shall be 2/3 of the cut for in paragraph 
62(b) above; 
                                                        
7 That is, all out-of-quota tariffs specified in Section I-A of Members' Schedules of Concessions.  In-quota 
tariffs shall be subject to commitments under the relevant paragraphs. 
8 This shall not be inclusive of the tariff cuts resulting from the modalities applicable to tropical products and 
tariff escalation cuts respectively, except where the effect of  these reductions is to increase the overall average tariff 
cut for the Member concerned by more than an additional 2.5 ad valorem  percentage points.  TN/AG/W/4/Rev.1 
 Page 13 
 
 
  (c) where the final bound tariff or ad valorem  equivalent is greater than 80 per cent and 
less than or equal to 130 per cent, the reduction shall be 2/3 of the cut for in paragraph 62(c) above;  and 
(d) where the final bound tariff or ad valorem  equivalent is greater than 130 per cent, the 
reduction shall be 2/3 of the cu t for in paragraph 62(d) above. 
65. The maximum overall average cut on final bound tariffs any developing country Member 
shall be required to undertake as a result of applica tion of this formula is [36] per cent.  Should the 
above formula imply an overall average cut of more  than [36] per cent, the developing country 
Member shall have the flexibility to apply lesser reductions applied in a proportionate manner across 
the bands, to keep within such an average level. 
66. Small, vulnerable economies
9 shall be entitled to moderate the cuts specified in paragraph 64 
above by a further [10] ad valorem  percentage points in each band. 
Recently-Acceded Members 
67. RAMs shall be entitled to moderate the cuts they  would otherwise have been required to make 
under the tiered formula in paragraph 64 by up to [7.5] ad valorem  percentage points in each band.  
All RAMs shall be entitled to exempt their final bound tariffs at or below 10 per cent.  
68. Saudi Arabia, the Former Yugoslav Republic of Macedonia, Viet Nam and Tonga, as very 
recently-acceded Members and small low-inco me RAMs with economies in transition10, shall not be 
required to undertake reducti ons in final bound tariffs.  
69. For all other RAMs, to the extent that, in implementing commitments undertaken in acceding 
to the WTO, there would be actual overlap with commitments to be otherwise undertaken in association with these Modalities, the start of implementation of commitments undertaken in 
association with these Modalities for such tariff lines shall begin one year after the end of 
implementation of accession commitment.  
70. The implementation period for RAMs may be pr olonged by up to two years after the end of 
the developing country Memb ers' implementation period. 
71. More specific provisions can be found in the relevant sections of this document. 
B. S
ENSITIVE PRODUCTS  
Designation 
72. Each developed country Member shall have the right to designate up to [4] [6] per cent of 
[dutiable] tariff lines as "Sensitive Products".  Wher e such Members have more than 30 per cent of 
their tariff lines in the top band, they may increase the number of Sensitive Products to 
                                                        
9 The Members concerned are those that meet the criteria  set out in paragraph 151 and are listed in Annex I.  
As is made clear in the Agreed Framework, Small vulne rable economies (SVEs) are not meant to create any sub -
category of Members.  Bearing that prin ciple in mind, the following Members could also be deemed to be eligible for 
this treatment, should they choose to avail themselves of it, despite not being members of the SVE Group per se  given 
that this treatment could be deemed to be broadly comp arably appropriate:  Republic of Congo, Côte d'Ivoire and 
Nigeria (plus other Members that can provide data that show that they meet the criteria in paragraph 151). 
10 This is applicable to Albania, Armeni a, Georgia, Kyrgyz Republic and Moldova. TN/AG/W/4/Rev.1 
Page 14  
 
  [6] [8] per cent, subject also to the conditions outli ned in paragraph 76 below.  Where application of 
this methodology would impose a disproportionate c onstraint in absolute number of tariff lines 
because tariff concessions are scheduled at the 6-digi t level, the Member concerned may also increase 
its entitlement to [6] [8] per cent. 
73. Developing country Members shall have the right to designate up to one-third more of tariff 
lines as "Sensitive Products". 
Treatment - tariff cut 
74. Members may deviate from the otherwise appli cable tiered reduction formula in final bound 
tariffs on products designated as Sens itive.  This deviation may be one-t hird, one-half or two-thirds of 
the reduction that would otherwise have been  required by the tiered reduction formula. 
Tariff quota expansion 
75. For developed country Members, tariff quotas derived from the provisions in paragraph 72 
above and paragraphs 76-77 below shall result in  new access opportunities equivalent to no less than 
[4] [6] per cent of domestic consumption expressed in terms of physical units where the two-thirds 
deviation is used.  Where the one-third deviation is used, the new access opportunities shall be no less 
than [3] [5] per cent of domestic consumption.  Wh ere the one-half deviation is used, the new access 
opportunities shall be no less than [3.5] [5 .5] per cent of domestic consumption.11 
76. Where a Member is entitled to, and chooses to  exercise its entitlement to have a higher 
number of Sensitive Products pursuant to paragra ph 72 above, the relevant amounts specified in 
paragraph 75 shall be maintained for the [4] [6] per cent of products applicable to all developed 
country Members.  For the additional [2] per cent of products available to those Members under paragraph 72, the Member concerned shall have an obligation to ensu re that, whichever deviation is 
selected, an additional [0.5] [1] per cent of domes tic consumption beyond what  is generally provided 
for is achieved for those additional products.  In add ition, if after applicatio n of its tariff reduction 
commitments a Member still wishes to retain more than 4 per cent of its [dutiable] tariff lines in 
excess of 100 per cent ad valorem , it shall, for all its Sensitive Produc ts, apply a further expansion of 
[  ] per cent of domestic consumption. 
77. Where the existing bound tariff quota volume al ready represents 10 per cent or more of 
domestic consumption, and the one-third deviation is used, the expansion in the tariff quota volume 
under paragraph 75 above need not be more than [2.5] [3.5] per cent of domestic consumption.  
Where the one-half deviation is used, the expans ion in the tariff quota volume under paragraph 75 
above need not be more than [3] [4] per cent of  domestic consumption.  Where the existing bound 
tariff quota volume represents 30 per cent or more of domestic consumption, the expansion need not 
be more than [2] [3] per cent of domestic  consumption or [2.5] [3.5] respectively. 
78. For developing country Members, the tariff quota expansion shall be two thirds of the volume 
for developed country Members.  For developing country Members, domestic consumption shall not 
include self-consumption of subsistence production. 
                                                        
11 See Annex C regarding the calculation of these tariff quota expansion commitments.  TN/AG/W/4/Rev.1 
 Page 15 
 
 
  79. Expansion of the tariff quota for a Sensitive Product shall be scheduled and applied on a 
most-favoured-nation basis only.  The first instalme nt shall occur on the first day of implementation 
and be a minimum of one per cent of additional dom estic consumption.  Thereafter, each additional 
one per cent of domestic consumption shall be im plemented at the expiry of each twelve-month 
period. 
C. OTHER ISSUES  
Tariff escalation 
80. The tariff escalation formula provided below sha ll apply to the list of primary and processed 
products attached in Annex D. 
81. In addition to the application of  the tiered tariff reduction formula, tariff escalation shall be 
addressed in the following manner: 
82. Instead of taking the cut that would otherwise a pply to final bound tariffs in the band to which 
the processed product belongs (with the exception of the top band), the processed product shall take 
the cut applicable to the tariffs th at fall in the [next] highest band.12  A processed product in the top 
band shall be reduced by a cut which is equal to [1 .3 times] the cut that would otherwise have been 
applicable [increased by 6 ad valorem  points]. 
83. These supplementary cuts shall be modera ted for the products concerned in two 
circumstances.  First, where the absolute difference between the processed and primary product tariffs 
after application of the normal tariff formula would be 5 ad valorem  percentage points or less in any 
given tier [except in the case of the bottom tier], no additional tariff escalation adjustment shall be 
required. 
84. Second, the tariff escalation adjustment form ula cannot be applied in full where doing so 
would reduce the tariff for the processed product below that applicable to the primary product.  In a 
situation where this would occur, the rate of reduc tion for the processed product shall be moderated to 
ensure that the final bound rate of the processed  product equates to, but does not reduce below, the 
final bound rate for the primary product. 
85. Tariff escalation treatment shall not apply to any product that is declared as Sensitive.  Where 
the reduction for a tropical product would result in a reduction that is greater than the reduction under 
the tariff escalation formula, the tropical product reduction shall apply. 
86. This modality shall be applied by devel oped country Members and developing country 
Members in a position to do so. 
Commodities 
87. In the event that adverse effects of tariff escal ation were not to be eliminated via the tiered 
formula for reductions in bound duties and such specific measures on tariff escalation as are provided 
for, Members shall engage with  commodity-dependent producing country Members to ensure 
satisfactory solutions. 
88. Consistent with this, the followi ng approach shall be applicable: 
(a) commodity-dependent developing countries, individually or as a group, shall identify 
and present products of interest to them for purposes of addressing tariff escalation to 
                                                        
12 [Alternatively, the cuts shall be exactly half-way between these two options.] TN/AG/W/4/Rev.1 
Page 16  
 
  be adopted as part of the modalities.  In  doing so, they will indicate the match of 
products on which tariff escalation should be addressed; 
(b) developed countries and developing countries in a position to do so will undertake 
tariff escalation reductions in  the identified products; 
(c) at the end of the implementation period, th e difference between the identified primary 
and processed products shall not exceed [x] pe rcentage points.  For this purpose, all 
non-ad valorem  duties on the products identified by developing countries shall be 
bound in ad valorem terms. 
89. Provision shall be made also for suitable pro cedures for negotiations on the elimination of 
non-tariff measures affecti ng trade in commodities. 
90. Provision shall be made to ensure the possib ility that Members may take joint action through 
adoption of suitable measures, including thro ugh adoption of intergovernmental commodity 
agreements, for stabilization of prices for exports of agricultural commodities at levels that are stable, 
equitable and remunerative.  The provisions of  Article XXXVIII in the chapter on Trade and 
Development of GATT 1994, Part IV which inter alia  stipulates that the WTO Members could take 
"joint action" through "international arrangements"  for ensuring "stable equitable and remunerative 
prices" for exports of primary agricultural commod ities should be reviewed, clarified and improved to 
provide that the term "arrangeme nts" covers both commodity agreements of which all interested 
producing and consuming countries are parties;  a nd agreements of which only commodity-dependent 
producing countries are parties. 
91. Action for negotiations and adoption of inte rgovernmental commodity agreements in 
pursuance of the provisions of the paragraph above  may be taken either jointly by producing and 
consuming countries or by commodity-dependent producing countries only. 
92. Such intergovernmental commodity agreemen ts may be negotiated and adopted by the 
countries themselves, or adopted after negotiati ons undertaken under the auspices of the WTO, 
UNCTAD or international commodity organizations. 
93. Intergovernmental commodity agreements may be  negotiated and adopted on an international 
or regional basis. 
94. Such agreements may provide for participation of association of producers. 
95. The general exceptions provisions of Article  XX(h) of GATT 1994 shall also apply to 
intergovernmental commodity agreements of which only producing countries of the concerned 
commodities are Members. 
96. Technical assistance shall be provided for, inter alia , the improvement of world markets for 
commodities and adoption and implementation of  intergovernmental commodity agreements. 
97. Financial resources required by the internationa l trade and other organizations for providing 
technical assistance in accordance with the prov isions of paragraphs 95 and 96 above shall be 
monitored through the mechanism established in WTO for administering Aid for Trade.  TN/AG/W/4/Rev.1 
 Page 17 
 
 
  Tariff simplification 
98. No tariff shall be bound in a form more complex than the current binding. 
99. [At least [90] per cent of] [All] bound tariffs on products in a Member's Schedule shall be 
expressed as simple ad valorem  tariffs.  Where a Member already has at least [90] per cent of its 
bound tariffs expressed in simple ad valorem  terms, that Member shall convert no less than 
[50] per cent of the remaining non- ad valorem  tariffs into simple ad valorem  tariffs.  All tariffs within 
a 4-digit HS heading shall be expressed in the same form. 
100. This tariff simplification shall be fully effected  on the first day of the implementation period.  
However, where a Member currently has less than  [60] per cent of its bound tariffs in simple 
ad valorem  terms, it shall ensure that:  
(a) at least [75] per cent of all bound tariffs are expressed as simple ad valorem  tariffs on 
the first day of implementation; 
(b) at least [80] per cent of all bound tariffs are expressed as simple ad valorem  tariffs no 
later than twelve months later; and 
(c) [90] per cent of all bound tariffs are expressed as simple ad valorem  tariffs no later 
than the end of the second year of the implementation period. 
101. In all cases, and notwithstanding the preceding paragraph, the most highly complex forms of 
bound tariffs, such as complex matrix tariffs, shall be converted to ad valorem  tariffs no later than the 
first day of the implementation period.  Compound tariffs and mixed tariffs shall be converted to 
simple ad valorem  tariffs or specific tariffs (within the limits of the overall percentages above) no 
later than the end of the first year of the impl ementation period.  The method for converting final 
bound non- ad valorem  tariffs into their ad valorem  equivalents, or for converting final bound 
compound, mixed and highly complex tariffs into specific or ad valorem  tariffs as provided for in the 
preceding paragraph, shall be the methodology to calculate ad valorem  equivalents as set out in 
Annex A to TN/AG/W/3 of 12 July 2006. 
102. Developing country Members making such conversi ons shall have an additional two years to 
achieve this outcome, if applicable.  Least-develope d country Members shall not  be required to effect 
any such changes. 
103. The simplified tariffs shall be specified in  Members' Draft Schedules.  In all cases of 
proposed simplification, Members shall supply sup porting data that demonstrates that the proposed 
simplified bound tariff is representative of, and doe s not amount to any increase over, the original 
more complex tariff and that the proposed simplification is in conformity with the agreed methodology.  All Members shall be given sufficien t time for evaluation of the proposed changes and 
all Members undertaking such a simplification shall respond constructively to queries made regarding 
those proposed conversions.  Upon request, the WTO Secretariat shall provide advice on technical 
matters and shall give particular technical assistance to developing country Members. 
104. Where there is provision above for implementati on of some tariff simplification later than the 
first day of implementation, the reductions in bound ta riffs prior to that point shall be on the basis of 
the existing bound tariffs for the Member concerned.   Reductions on that basis shall be the legally 
binding commitment until the point at which the si mplified tariff becomes the binding commitment.  
It shall be made clear in the Draft Schedules of  the Member concerned which tariff lines are involved 
and the point at which the simplification for those lines shall be effected. TN/AG/W/4/Rev.1 
Page 18  
 
  Tariff quotas 
(a) Bound in-quota tariffs 
105. The final reductions of Members' existing final bo und in-quota tariffs shall be no less than the 
[default cut] [sensitive product cut increased by 20 per cent for developed country Members and by 
14 per cent for developing country Members].  The implementation period and staging shall be 
aligned with those applying to reductions in the existing bound out-of-quota tariffs.  [Bound in-quota 
tariffs shall be eliminated in e qual annual instalments over five year s for developed country Members.  
Developing country Members shall not be require d to make reductions in their existing bound in-
quota tariffs.] 
106. In-quota tariffs for new Doha Round tariff quota access opportunities shall [be bound at zero] 
[be bound at a rate equivalent to what would have applied under application of the tiered formula but 
for the deviation applied as a result of its designation as a sensitive, less 10 ad valorem  percentage 
points for tariffs in the top tier, 7.5 ad valorem  percentage points for tariffs in the second highest tier, 
5 ad valorem  percentage points for tariffs in the third highest tier and 2.5 ad valorem  percentage 
points for tariffs in the bottom tier.  Any resulting in -quota duty which would, under this approach, be 
less than 10 per cent shall be bound at zero, a nd in no case shall the bound in-quota duty exceed 30 
percentage points]. 
107. Reductions in in-quota tariffs shall not count for the purposes of calculating the average cuts, 
if applicable. 
(b) Tariff quota administration 
108. Tariff quota administration of scheduled tariff quot as shall be deemed to be an instance of 
"import licensing" within the meaning of the Uruguay Round Agreement on Import Licensing Procedures and, accordingly, that Agreement shal l apply in full, subject to the Agreement on 
Agriculture and to the following more  specific and additional obligations. 
109. As regards the matters referred to  in paragraph 4(a) of Article 1 of that Agreement, as these 
agricultural tariff quotas are negotiated and schedul ed commitments, publication of the relevant 
information shall be effected no later than 90 da ys prior to the opening date of the tariff quota 
concerned.  Where applications are involved, this  shall also be the minimum advance date for the 
opening of applications. 
110. As regards paragraph 6 of Article 1 of that Ag reement, applicants for scheduled tariff quotas 
shall apply to one administrative body only. 
111. As regards the matters referred to in paragraph 5(f) of Article 3 of that Agreement, the period 
for processing applications shall be, unqualifiedly, no  longer than 30 days for "as and when received" 
cases and no longer than 60 days for "simultane ous" consideration cases.  The issuance of licences 
shall, therefore, take place no later than the eff ective opening date of the tariff quota concerned, 
except where, for the latter category, there has been  an extension for applications allowed for under 
Article 1.6 of that Agreement. 
112. As regards Article 3.5(i), licences for schedul ed tariff quotas shall be issued in economic 
quantities. 
113. Tariff quota "fill rates" shall be notified.  TN/AG/W/4/Rev.1 
 Page 19 
 
 
  114. In order to ensure that their administrative pro cedures are consistent with Article 3.2 of that 
Agreement, "no more administratively burdensom e than absolutely necessary to administer the 
measure", importing Members shall ensure that unfilled tariff quota access is not attributable to 
administrative procedures that are more constraini ng than an "absolute necessity" test would demand. 
115. Members shall, accordingly, provide for an e ffective re-allocation mechanism [which ensures 
that, where licences held by private operators are less than fully utili zed for reasons other than those 
that would be expected to be followed by a nor mal commercial operator in the circumstances, all 
feasible steps shall be taken to provide re-allocated  access to tariff quotas as so on as possible.  If this 
is legally and practicably feasible within a given tariff quota allocation period, the re-allocation shall 
be done within that quota period.  If not, chang es to the licence allocation arrangements tailored to 
remedy the problem identified shall be implemente d no later than the commencement of the next 
licensing period] [in accordance with the procedures outlined in Annex E]. 
116. In any event, an importing Member shall, wher e it is manifest that a tariff quota is under 
filled, request those operators holding unused entitle ments whether they would be prepared to make 
them available to other potential users.  Where the tariff quota is subject to a country-specific 
allocation, the importing Member shall ensure that that request is transmitted to the country specific 
holder of the allocation concerned. 
117. As regards Article 3.5(a) (ii) of that Agreem ent, Members shall make available the contact 
details of those importers holding licences for acces s to scheduled agricultural tariff quotas, where, 
subject to the terms of Article 1.11, this  is possible and/or with their consent. 
118. [Further to Article 3.5(k), impor ts shall only be attributable to a scheduled agricultural tariff 
quota when the imports concerned have been accomp anied by a certificate of origin issued by the 
exporting country Member concerned for that purpose.  Exporting country Members shall issue such certificates on demand for any of their exporters fulfilling normal requirements for export.] 
Special Agricultural Safeguard (SSG) 
Either: 
119. [Article 5 of the Agreement on Agriculture sh all expire for developed country Members on 
the first day of the implementation period.]  [Dev eloped country Members shall reduce the number of 
tariff lines eligible for the SSG to 1.5 per cent of  scheduled tariff lines, and developing country 
Members shall reduce the number of tariff lines eligible  for the SSG to [x] per cent of scheduled tariff 
lines.] 
Or: 120. Pending full elimination of the SSG by develope d country Members within [4] years of the 
commencement of the implementation period, th ose Members shall, on the first day of the 
implementation period, have reduced the number of tariff lines eligible for the SSG under the 
Uruguay Round Agreement on Agriculture to no more than 1.5 per cent of scheduled tariff lines.  This 
number shall be reduced to no more than one half of  that number two years later and full elimination 
shall occur two years thereafter.  Furthermore, the terms and conditions of such an SSG for developed 
country Members shall be streamlined to ensure that:  
(a) in respect of the quantity trigger: it shall be available only where, over a rolling three-
year average, imports are above a minimum threshold of 10 per cent of domestic 
consumption, have increased by at least 25 per cent in absolute terms and the ratio of 
imports to domestic consumption has increased  by a factor of 0.35 or more.  Where TN/AG/W/4/Rev.1 
Page 20  
 
  the applied rate is equivalent to the bound rate, the remedy shall be a maximum of an 
additional one third of the bound duty.  Wh ere the applied rate is less than the bound 
rate the remedy shall be the full margin between the bound rate and the applied rate 
or one quarter of the bound rate, (whichever is greater);  and 
(b) in respect of the price trigger:  it shall be invoked for no more than two-thirds of the 
eligible tariff lines in any given year within the implementation period and the restrictiveness of the present provisions under Article 5 shall be effectively halved by 
modifying the specific parameters currently provided in paragraphs (b) through (e) of 
paragraph 5 of Article 5. 
121. For developing country Members the terms and conditions of the SSG shall remain 
unchanged from the URAA terms a nd conditions except that the ta riff rates concerned shall be 
updated to reflect the outcome of  the Doha Round negotiations.  
122. Article 5 of the Agreement on Agriculture sh all be amended accordi ngly to reflect these 
modalities. 
D. S
PECIAL AND DIFFERENTIAL TREATMENT  
Special Products 
123. Developing country Members shall be entitled to self-designate Special Products guided by 
indicators13 based on the criteria of food security, livelihood security and rural development.[14]  
There shall be a minimum entitlement of 8 per cent15, and a maximum entitlement of 
[12] [20] per cent, of tariff lines available for self-designation as Special Products.  Under this 
provision, there is an entitlement to [6] per cent of tariff lines which shall take a tariff cut of 
[8] [15] per cent.  A further [6] per cent is availabl e with a cut of [12] [25] per cent.  [[A further] 
[8 per cent of] [no] tariff lines shall be eligible for no cut.] 
124. In the case of small vulnerable economies, they may, if they choose to do so, apply the 
moderated tariff tiered formula for SVEs provided for in paragraph 66 above plus the Special Product 
entitlement outlined above.  Alternatively, they may simply deviate from the tiered formula cut for as 
many tariff lines as they choose to designate as a Sp ecial Product provided that they meet the overall 
average cut of 24 per cent.  The tari ff lines that they designate as Sp ecial Products need not be subject 
to any minimum tariff cut and this designation need not be guided by the indicators. 
125. In the case of RAMs, the threshold level above which indicators are not required to be used 
shall be [2] per cent higher, the maximum number of Special Product tariff line entitlement shall be 
[1] per cent greater and the relevant cuts may be [2] per cent less than generally applicable.  [An 
additional 1 per cent of tariff lines without tariff cuts shall be available.] 
                                                        
13 See Annex F. 
14 Below the minimum entitlement of 8 per cent referred to in the next sentence, the developing country 
Member concerned need not resort to guidance by those indicators. 
15 Where a Member finds that it would not, after guidance by indicators, be entitled to any additional Special 
Products beyond the minimum provided for in this paragrap h, that Member may, in effect, "transfer" any unused 
Sensitive Products entitlement to obtain thereby additional Special Products, subject to the following:  (a) that the maximum entitlement for transfer cannot be more than would be consistent with respecting the overall ceiling of [12] [20] per cent of tariff lines for Special Products; and (b) that  the tariff reduction treatment for the tariff lines concerned 
shall be in conformity with the tariff cut entitlements for Special Products under this paragraph, except that sensitive product "transfers" cannot be used for [additional] "no cut" Special Products.  TN/AG/W/4/Rev.1 
 Page 21 
 
 
  Special Safeguard Mechanism (SSM) 
126. The SSM shall have no a priori product limitations  as to its availability, i.e. it can be invoked 
for all tariff lines in principle.  However, it sha ll not be invoked for more than [3] [8] [products]16 in 
any given twelve-month period. 
127. A price-based and a volume-based SSM shall be available. In no circumstances may any 
product be, however, subject to the simultaneous app lication of price- and volume-based safeguards.  
Nor shall there be application of either of  these measures if an SSG, a measure under GATT 
Article XIX, an anti-dumping or countervailing measure, or a measure under the Agreement on 
Safeguards is in place. 
128. As regards the volume-based SSM, it shall be applied on the basis of a rolling average of 
imports in the preceding three-year period (hereafter "base imports").  On this basis17, the applicable 
triggers and remedies shall be set as follows: 
(a) where the volume of imports during any year exceeds [105] [130] per cent but does 
not exceed [110] [135] per cent of base imports, the maximum additional duty that 
may be imposed on applied tariffs shall not exceed [[50] [20] per cent of the current 
bound tariff or [40] [20] percentage points, whichever is [higher] [lower]] [but where 
application of this additional duty woul d also mean that the current bound tariff 
would be exceeded, that bound tariff shall apply as a maximum ceiling]; 
(b) where the volume of imports during any year exceeds [110] [135] per cent but does 
not exceed [130] [155] per cent of base imports, the maximum additional duty that 
may be imposed on applied tariffs shall not exceed [[75] [25] per cent of the current 
bound tariff or [50] [25] percentage points, whichever is [higher] [lower]] [but where 
application of this additional duty woul d also mean that the current bound tariff 
would be exceeded, the additional duty sha ll be capped at a level which is no more 
than halfway between the current bound ta riff and the pre-Doha Round bound tariff]; 
(c) where the volume of imports during any year exceeds [130] [155] per cent of base 
imports, the maximum additional duty that may be imposed on applied tariffs shall 
not exceed [[100] [30] per cent of the current bound tariff or [60] [30] percentage points, whichever is [higher] [lower]] [but  where application of this additional duty 
would also mean that the current bound tariff would be exceeded, the pre-Doha 
bound tariff shall apply as a maximum ceiling]. 
129. Imports under any scheduled tariff rate quota commitment may be counted for the purpose of 
determining the volume of imports required for invoking the volume-based SSM, but no additional 
duty shall be imposed on imports within  such tariff rate quota commitments. 
                                                        
16 Defined as a maximum of [4] [8] tariff lines at the 6-digit level of the Harmonized System (HS) 
nomenclature. 
17 [For those Members with domestic consumption data available to them and for whom the volume of 
imports in any given year is less than the situation described in paragraph 128(c), the remedy otherwise specified here shall apply only where: (a) the volume of imports in the current year is above a minimum threshold of [7.5] per cent of domestic consumption; (b) the volume of imports in the current year has increased by at least 20 per cent in absolute terms compared to the previous year; and (c) the ratio of the volume of imports to domestic consumption in the current year has increased by a factor of at  least [0.3] over the rolling three-year average.] TN/AG/W/4/Rev.1 
Page 22  
 
  130. As regards the price-based SSM, it shall be applicable where the c.i.f. import price18 of the 
shipment19 entering the customs territory of the devel oping country Member, expressed in terms of its 
domestic currency falls below a trigger price20 equal to [70 per cent of] the average monthly 
[MFN-sourced] price21 for that product for the most recent three-year period preceding the year of 
importation for which data are available, provide d that, where the developing country Member's 
domestic currency has at the time of importation de preciated by at least 10 per cent over the preceding 
12 months against the international currency or cu rrencies against which it is normally valued, the 
import price shall be computed using the average ex change rate of the domestic currency against such 
international currency or currencies for the three-year period referred to above. 
131. The price-based SSM remedy shall apply on a sh ipment-by-shipment basis.  The additional 
duty shall not exceed [50 per cent] of the differe nce between the import price of the shipment 
concerned and the trigger price [provided that this w ould not also result in exceeding [one half of the 
difference between] the pre- [and current] Doha R ound bound tariff[s], in which case the latter shall 
constitute the limit]. 
132. Developing country Members shall not take recourse to the price-based SSM [as far as 
practicable], where the volume of imports of the pr oducts concerned in the current year is declining.  
133. [However, for least-developed country Members,  where application of any of the above 
modalities on price- and volume-based measures woul d involve the prospect of exceeding their pre-
Doha bound tariffs, such tariffs may be exceeded by a maximum of 20 ad valorem  percentage points 
provided that all other relevant conditions have been met.]  [Sma ll vulnerable economies may, in a 
special situation of major disruption for a par ticular product involving volumes significantly beyond 
the threshold envisaged under paragr aph 128(c) above, have emergency recourse also to this provision 
for volume-based measures only for a maximum twelve-month period.] 
134. Where preferential trade is included in the cal culation of volume or price triggers, the 
additional SSM duties shall be applied also to prefer ential trade.  Where preferential trade is excluded 
from the application of remedies, that preferential trade shall not have been included when calculating 
volume and price triggers. 
135. Any shipments of the product in question which,  before the imposition of the additional duty, 
have been contracted for and were en route afte r completion of custom clearance procedures in the 
exporting country, either under the price- or volume-based SSM, shall be exempted from any such 
additional duty, provided that where a volume-base d SSM may be applicable in the next twelve-
month period, the shipment of the product in question may be so counted in that period for the purposes of triggering the SSM. 
136. The volume-based SSM may be maintained [until the end of the year in which it has been 
imposed] [for a maximum period of [6] [12] months from the initial invocation of the measure]. 
Where the measure is maintained beyond the year of invocation, the relevant products shall be 
accounted for under the limits define d in paragraph 126 above , and only if all the above conditions are 
met.  No product shall be subject to the volume-ba sed SSM for more than two consecutive [6] or [12] 
month periods. 
                                                        
18 Hereafter the "import price". 
19 A shipment shall not be considered for purposes of paragraphs 130 and 131 unless the volume of the 
product included in that shipment is within the range of normal commercial shipments of that product entering into the customs territory of the importing developing country Member. 
20 The trigger price shall be publicly disclosed and available to the extent necessary to allow other Members 
to assess the additional duty that may be levied. 
21 Hereafter the "reference price". The reference price us ed to invoke the provisions of this paragraph shall 
be the average monthly c.i.f. unit value of the product concerned.  TN/AG/W/4/Rev.1 
 Page 23 
 
 
  137. The operation of the SSM shall be carried out  in a transparent manner and the basis upon 
which ongoing calculations of rolling averages of im port volumes and prices shall be accessible to all 
Members so that they can be fully informed of  the basis upon which any potential actions may be 
taken.  Any developing country Me mber taking action shall give notice in writing, indicating the tariff 
lines affected by the additional SSM duty and including relevant data, to the Committee on 
Agriculture as far in advance as may be practicable or , where this is not possible, no later than 15 days 
after the implementation of such action.  The Me mber taking action shall afford any interested 
Members the opportunity to consult with it in respect of the conditions of application of such action. 
138. The SSM shall remain in force for the dura tion of the Doha Round implementation period 
[after which it shall expire.] 
139. The relevant Articles of the Agreement on Agricu lture shall be amended to reflect the above 
modalities. 
Fullest liberalization of trade in tropical and diversification products 
140. For those tropical and diversification products  attached in Annex G, the following modality 
shall be applied over and above that which would otherwise result from application of the tiered 
formula.  [Where the scheduled tariff is less than or equal to 25 per cent ad valorem , it shall be 
reduced to zero. Where it is greater than 25 per cent ad valorem  the applicable tariff cut shall be 
85 per cent.  There shall be no sensitive product trea tment for any of the products appearing on the 
annexed list.  The implementation of the cuts con cerned shall be in four equal annual steps for all 
developed country Members.] [Where the tariff is greater than or equal to 10 per cent, it shall be 
reduced by [66] [73] per cent, except for tariffs in  the top band which shall be reduced by the tariff 
escalation tariff cut for that band increased by 2 per cen t.  Where the tariff is less than 10 per cent, it 
shall be reduced to zero. 
141. The reductions concerned shall be implem ented by developed country Members in 
accordance with the general tariff reduction implemen tation period. Developing country Members in a 
position to do so are encouraged to make additiona l efforts on tropical products beyond what would 
be required under the tiered formula.]. 
Long-standing preferences and preference erosion 
142. [For the products listed in Annex H, preference erosion shall be addressed as follows.  There 
shall be no tariff cuts on the items in that list for 10 years.  Tariff cuts shall commence only after that 
point and shall be implemented over five years in equal annual instalments thereafter.]  [For those 
products listed in Annex H, where:  
(a) the pre-Doha MFN bound tariff is greater than 10 per cent ad valorem , and 
(b) over the most recent three-year period, the total value of trade [from the long-
standing preference receiving country Member s is greater than [US$ 50,000] [is [3] 
[5]per cent of any long-standing preference receiver's total agricultural trade to the 
market concerned] and 
(c) there is unlimited long-standing preference eligibility in the market concerned,  
tariff cuts by long-standing preference granting country Members shall be implemented in equal 
annual instalments steps over a period that is tw o years longer than the implementation period for 
developing country Members for ta riff cuts under the tiered formula. TN/AG/W/4/Rev.1 
Page 24  
 
  143. Where, however, there is an overlap between products subject to this  provision and those 
covered by the tariff escalation and/or tropical produc ts provisions, the latter provisions shall prevail, 
except for the specific [  ] products identified in  Annex H on which tariff reduction commitments shall 
proceed as follows [  ].] 
144. [Long-standing preference granting] Members shall provide targeted technical assistance, 
including additional financial and capacity building assistance to help address supply-side constraints 
and to promote the diversification of existing prod uction in the territories of preference receiving 
Members.  Progress shall be reviewed annually. 
E. LEAST -DEVELOPED COUNTRIES  
145. Least-developed country Members are not required to undertake reductions in bound duties. 
146. Developed country Members sha ll, and developing country Members declaring themselves in 
a position to do so should22: 
(a) Provide duty-free and quota-free market access on a lasting basis, for all products 
originating from all LDCs by 2008 or no late r than the start of the implementation period 
in a manner that ensures stabilit y, security and predictability. 
(b) Members facing difficulties at this time to pr ovide market access as set out above shall 
provide duty-free and quota-free market acc ess for at least 97 per cent of products 
originating from LDCs, defined at the tariff lin e level, by 2008 or no later than the start 
of the implementation period.  In addition, these Members shall take steps to 
progressively achieve compliance with the ob ligations set out above, taking into account 
the impact on other developing country Members at similar levels of  development, and, 
as appropriate, by incrementally buildin g on the initial list of covered products. 
(c) Developing country Members shall be permitte d to phase in their commitments and shall 
enjoy appropriate flexibility in coverage. 
(d) Ensure that preferential rules of origin app licable to imports from LDCs are transparent 
and simple, and contribute to facilitating market access. 
(e) Inform WTO Members of the products that will be cove red under the commitment to 
provide duty-free and quota-free market acc ess for at least 97 per cent of products 
originating from LDCs, defined at the tariff lin e level by 2008, or no later than the start 
of the implementation period.  
(f) Notify the steps and possible time frames with in which they will progressively achieve 
full compliance with the Decision.   
147. As part of the review foreseen in the Decision, the Committee on Trade and Development 
shall monitor progress made in its implementation, incl uding in respect of preferential rules of origin.  
The monitoring procedure should be defined a nd agreed by the time of final schedules. 
                                                        
22 The text of this paragraph is the "Decision on Me asures in Favour of Least-Developed Countries" in 
Annex F of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC).  TN/AG/W/4/Rev.1 
 Page 25 
 
 
  F. COTTON MARKET ACCESS  
148. Developed country Members and developing country Members in a position to do so shall 
give duty- and quota-free access for cotton exports from least-developed country Members from the 
first day of the implementation period. 
149. Developing country Members that are not in a position to give duty- and quota-free access for 
cotton exports from least-developed country Members from the first day of the implementation period 
shall undertake to look positively at possibilities for increased import opportunities for cotton from 
least-developed country Members. 
G. SMALL , VULNERABLE ECONOMIES  
150. For the purposes of these modalities, this term a pplies to Members with economies that, in the 
period 1999 to 2004, had an average share of (a) world merchandise trade of no more than 0.16 per cent or less, and (b) world trade in non-agricultural products of no more than 0.1 per cent and (c) world trade in agricultural products of no more than 0.4 per cent. 
151. Developed country Members and developing country Members in a position to do so shall 
provide enhanced improvements in market access for products of export interest to Members with 
small, vulnerable economies. 
152. More specific provisions are to be found in relevant sections of this document. TN/AG/W/4/Rev.1 
Page 26  
 
  III. EXPORT COMPETITION 
A. GENERAL  
153. Nothing in these modalities on export competition ca n be construed to give any Member the 
right to provide, directly or indirectly, export s ubsidies in excess of the commitments specified in 
Members' Schedules, or to otherwise detract from th e obligations of Article 8 of that Agreement.  
Furthermore, nothing can be construed to imply any change to the obligations and rights under 
Article 10.1 or to diminish in any way existing obligations under other provisions of the Uruguay 
Round Agreement on Agriculture or other WTO Agreements. 
B. SCHEDULED EXPORT SUBSIDY COMMITMENTS  
154. Developed country Members shall eliminate their remaining scheduled export subsidy 
entitlements by the end of 2013.  This shall be effected on the basis of: 
(a) budgetary outlay commitments being reduced by 50 per cent by the end of 2010 in 
equal annual instalments from the date of entry into force, with the remaining 
budgetary outlay commitments being reduced to  zero in equal annual instalments so 
that all forms of export subsidies are eliminated by the end of 2013. 
(b) quantity commitment levels being [reduced to zero in equal annual instalments from 
the applicable commitment levels] [app lied as a standstill from the commencement 
until the end of the implementation period at the lower of either the then current actual applied quantity levels or the bo und levels reduced by 20 per cent]. 
155. Developing country Members shall eliminate th eir export subsidy entitlements by reducing to 
zero their scheduled export subsidy budgetary outlay and quantity commitment levels in equal annual 
instalments by the end of 2016. 
156. In accordance with the Hong Kong Ministerial Declaration, developing country Members 
shall, furthermore, continue to benefit from th e provisions of Article 9.4 of the Agreement on 
Agriculture until the end of 2021, i.e. five years af ter the end-date for elimination of all forms of 
export subsidies. 
C. E
XPORT CREDITS , EXPORT CREDIT GUARANTEES OR INSURANCE PROGRAMMES  
157. Export credit, export credit guarantees or insurance programmes shall comply with the 
provisions set out in Annex J. 
D. AGRICULTURAL EXPORTING STATE TRADING ENTERPRISES  
158. Agricultural exporting state trading enterprises sh all comply with the provisions of Annex K. 
E. INTERNATIONAL FOOD AID 
159. International food aid shall comply with the provisions of Annex L.  TN/AG/W/4/Rev.1 
 Page 27 
 
 
  F. COTTON  
160. Those export subsidies for cotton referred to in paragraph 153 above are prohibited in 
accordance with the mandate contained in paragraph 11 of the Hong Kong Ministerial Declaration.  
However, developing country Members which have an y export subsidy entitlement s referred to in that 
paragraph shall comply with this prohibition no later than the end of the first year of the 
implementation period. 
161. To the extent that new disciplines and commitments for export credits, export credit 
guarantees or insurance programmes,  agricultural exporting state trading enterprises and international 
food aid create new and additional obligations for Members as regards cotton, any such obligations 
shall be implemented on the first day of the impl ementation period for deve loped country Members, 
and by the end of the first year of the implem entation period for developing country Members. 
 TN/AG/W/4/Rev.1 
Page 28  
 
  IV. MONITORING AND SURVEILLANCE 
162. See Annex M. 
V. OTHER ISSUES 
A. [SECTORAL INITIATIVES ] 
B. [DIFFERENTIAL EXPORT TAXES ] 
C. [GIS] 
D. EXPORT PROHIBITIONS AND RESTRICTIONS  
163. In order to strengthen the existing disciplines on export prohibitions and restrictions, Article 12 
of the Agreement on Agriculture shall be m odified to include the following elements. 
164. Prohibitions or restrictions under Article XI.2(a ) of GATT 1994 in Members' territories shall be 
notified to the Committee on Agriculture within 90 da ys of the coming into force of these provisions. 
165. A Member instituting export prohibitions and restri ctions shall give notice of the reasons for 
introducing and maintaining such measures. 
166. The Committee on Agriculture shall provide for a nnual notification update and surveillance of 
these obligations. 
167. As provided in paragraph 7 of  Article 18 of the Agreement on Agriculture, any Member may 
bring to the attention of the Committee on Agriculture  such measures which it considers ought to have 
been notified by another Member. 
168. Existing export prohibitions and restrictions in  foodstuffs and feeds under Article XI.2(a) of 
GATT 1994 shall be eliminated by the end of the first year of implementation. 
169. Any new export prohibitions or restrictions under Article XI.2(a) of GATT 1994 should not 
normally be longer than 12 months, and shall only be longer than 18 months with the agreement of the 
affected importing Members.  TN/AG/W/4/Rev.1 
 Page 29 
 
 
  ANNEX A 
 
UNITED STATES – PRODUCT SPECIFIC BLUE BOX LIMITS 
 
[To be finalized] 
 
 TN/AG/W/4/Rev.1 
Page 30  
 
  ANNEX B 
 
ANNEX 2 OF THE AGREEMENT ON AGRICULTURE SHALL BE AMENDED AS FOLLOWS : 
Government Service Programmes General services (paragraph 2) 
Add the following subparagraph (h) to the existing paragraph 2: 
(h) policies and services related to farmer  settlement, land reform programmes, 
rural development and rural livelihood secu rity in developing country Members, 
such as provision of infrastructural services, land rehabilitation, soil 
conservation and resource management, drought management and flood control, rural employment programmes, nutritional security, issuance of property titles and settlement programmes, to promote rural development and poverty alleviation. 
Public stockholding for food security purposes 
Modify the existing footnote 5 as follows: 
  For the purposes of paragraph 3 of this Annex, governmental stockholding 
programmes for food security purposes in de veloping countries whose operation is 
transparent and conducted in accordance with officially published objective criteria or 
guidelines shall be considered to be in conformity with the provisions of this 
paragraph, including programmes under which stocks of foodstuffs for food security 
purposes are acquired and released at administ ered prices, provided that the difference 
between the acquisition price and the external  reference price is accounted for in the 
AMS [provided that the difference between the acquisition price and the external 
reference price when multiplied by the volume of production for the product 
concerned does not exceed [15] per cent of that Member's total value of 
production of the basic agricultural product concerned and that the total for all 
such products under any such programmes does not exceed [10] per cent of the value of total agricultural production for the Member concerned. Where a developing country Member uses this provisi on, it shall notify the relevant data 
to the Committee on Agriculture.]    
Decoupled income support (paragraph 6) Modify the existing subparagraph (a) as follows: 
(a) Eligibility for such payments shall be de termined by clearly-defined criteria such as 
income, status as a producer or landowner, factor use or production level in [, or the 
allocation of entitlements established in relation to,]  a defined , and
 fixed and 
unchanging historical  base period  which shall be notified to the Committee on 
Agriculture.  An exceptional update is not precluded, [provided that producer 
expectations and production decisions a re unaffected, in particular due to the 
fact that any updated base period is a si gnificant number of years in the past.] 
[but any such update shall only be p ermissible where the updated base period is 
itself a sufficiently significant number of years in the past so as to ensure that 
producer expectations and production  decisions are not affected and, 
accordingly, that the payments or enti tlements concerned shall not have the  TN/AG/W/4/Rev.1 
 Page 31 
 
 
  effect of inducing production contrary to paragraph 1 of Annex 2 or newly 
providing price support to producers contra ry to paragraph 1(b) of Annex 2.]  
[Developing country] Members which have no t previously made use of this type 
of payment, and thus have not notified, shall not be precluded from establishing 
an appropriate base period7, which shall be fixed and unchanging and shall be 
notified. 
  7  Developing country Members may not h ave the capacity to fully assess the 
impact of innovation in their agricultural policies. Accordingly, the base period 
of a time-limited experimental or pilot programme may not be taken as the fixed 
and unchanging base period for the purposes of this paragraph.  
 
Payments (made either directly or by way of go vernment financial participation in crop insurance 
schemes) for relief from natural disasters (paragraph 8) 
Modify the existing subparagraphs (a), (b) and (d) as follows: 
(a) Eligibility for such payments shall arise : 
(i) In the case of direct payments related to disasters  only following a formal 
recognition by government authorities that a natural or like disaster (including disease outbreaks, pest infestations, nuclear accidents, and war on the territory of the Member concerned) has occurred or is occurring;  and shall be determined by a production 
loss
8 which exceeds 30 per cent of the average of production in the preceding three 
five-year period or a three-year average b ased on the preceding five-year period, 
excluding the highest and the lowest entry.   In the case of developing country 
Members, payments for relief from natural disasters may be provided to 
producers when the production loss is less than 30 per cent of the average of production in the preceding five-year period or a three-year average based on 
the preceding five-year period.  
(ii) In the case of government financia l participation in crop or production 
insurance schemes, eligibility for such payments shall be determined by a 
production loss which exceeds 30 per cent of the average production in a period demonstrated to be actuarially appropriat e.  In the case of a developing country 
Member's government's financial particip ation in crop or production insurance 
schemes, eligibility for payments may be provided to producers when the production loss is less than 30 per cent of the average of production in the preceding five-year period or a three-year average based on the preceding five-year period. 
(iii) In the case of the destruction of animals or crops to control or prevent pests, 
diseases, disease-carrying organisms or  disease-causing organisms named in 
national legislation or international st andards, the production loss may be less 
than 30 per cent of the average of production referred to in paragraph 8(a)(i) or 8(a)(ii), as applicable. 
(b) Payments made under this paragraph  following a disaster 
shall be applied only in 
respect of losses of income, crops, livestock (including payments in connection with 
the veterinary treatment of animals), la nd or other production factors due to the 
natural disaster or destruction of animals or crops  in question. TN/AG/W/4/Rev.1 
Page 32  
 
  (d) Payments made under this paragraph  shall not exceed the level required to prevent 
or alleviate further loss as defined in criterion (b) above. 
  8  Developing country Members may det ermine the production loss of the 
affected sector(s) or region(s) on an aggregate basis.  
 
Structural adjustment assistance provided  through investment aids (paragraph 11) 
Modify the existing subparagraph (b) as follows: 
(b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the 
producer in any year after the base period other than as provided for under criterion 
(e) below.  [Where applicable,] The base period shall be fixed and unchanging 
and shall be notified to the Committee on  Agriculture.  An exceptional update is 
not precluded, [provided that producer expectations and production decisions are unaffected, in particular due to the fact that any updated base period is a 
significant number of years in the past] [but any such update shall only be 
permissible where the updated base period is itself a sufficiently significant number of years in the past so as to  ensure that producers expectations and 
production decisions are not affected a nd, accordingly, that the payments or 
entitlements concerned shall not have the effect of inducing production contrary 
to paragraph 1 of Annex 2 or newly providing price support to producers 
contrary to paragraph 1(b) of Annex 2.] [Developing country] Members which have not previously made use of this type  of payment, and thus have not notified, 
shall not be precluded from establishing an appropriate base period
9, which 
shall be fixed and unchanging and shall be notified. 
 9  Developing country Members may not ha ve the capacity to fully assess the 
impact of innovation in their agricultura l policies. Accordingly, the base period 
of a time-limited experimental or pilot programme may not be taken as the fixed 
and unchanging base period for the purposes of this paragraph.  
Payments under regional assistance programmes(paragraph 13) 
Modify the existing subparagraphs (a), (b) and (f) as follows: 
(a) Eligibility for such payments shall be li mited to producers in disadvantaged regions.  
Each such region must be a clearly designated contiguous geographical area with a definable economic and administrative iden tity, considered as disadvantaged on the 
basis of neutral and objective criteria clearly spelt out in law or regulation and indicating that the region's difficulties arise out of more than temporary 
circumstances.  Developing country Members shall be exempted from the 
condition that a disadvantaged region mu st be a contiguous geographical area. 
(b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer in any year after the base period other than to reduce that production.  
[Where applicable,] The base period sha ll be fixed and unchanging and shall be 
notified to the Committee on Agricult ure.  An exceptional update is not 
precluded, [provided that producer expectations and production decisions are unaffected, in particular due to the fact that any updated base period is a  TN/AG/W/4/Rev.1 
 Page 33 
 
 
  significant number of years in the past] [but any such update shall only be 
permissible where the updated base period is itself a sufficiently significant number of years in the past so as to  ensure that producers expectations and 
production decisions are not affected a nd, accordingly, that the payments or 
entitlements concerned shall not have the effect of inducing production contrary to paragraph 1 of Annex 2 or newly providing price support to producers contrary to paragraph 1(b) of Annex 2.] [Developing country] Members which have not previously made use of this type  of payment, and thus have not notified, 
shall not be precluded from establishing an appropriate base period
10, which 
shall be fixed and unchanging and shall be notified.  
 (f) The payments shall be limited to the extra costs or loss of income involved in 
undertaking agricultural production (including livestock production)  in the 
prescribed area. 
 10  Developing country Members may not h ave the capacity to fully assess the 
impact of innovation in their agricultura l policies. Accordingly, the base period 
of a time-limited experimental or pilot programme may not be taken as the fixed 
and unchanging base period for the purposes of this paragraph. 
 TN/AG/W/4/Rev.1 
Page 34  
 
  ANNEX C 
 
BASIS FOR THE CALCULATION OF TARIFF QUOTA EXPANSION 
 
Either : 
 1. Where, for any product
1, a Member has a tariff quota bound in its Schedule and wishes to 
designate any tariff line within that product coverage  as Sensitive, the defi ned percentage of tariff 
quota access to be provided shall be calculated in term s of the percentage of domestic consumption of 
the entire product, irrespective of whether, for any number of tariff lines within that product coverage, 
the Member concerned has taken the full (i.e. "non-Sensitive") tariff cut. 
2. Where the domestic consumption data for the product in question is available from 
recognized international sources such as FAO or OECD, it shall be used.  If it is not so available, 
existing national data shall be used.  In the calcula tion of domestic consumption at that product level, 
all consumption must be included in the calculation,  whether for direct human  consumption, industrial 
use, animal feed, etc.  This data must be provi ded in a transparent manner using a commonly-agreed 
supporting data template.  Where this data does not currently exist at a national level, it shall be 
arrived at through a balance sheet approach (i.e. imports + production – exports +/- changes in stocks).  Calculations shall be provided in a transparent manner using a commonly-agreed supporting 
data template. 
Or: 
3. Where, for any product
2, a Member wishes to designate only a certain number of tariff lines 
within that product as Sensitive, it is free to do so  (provided the total number of tariff lines remains 
within the defined numerical limit on tariff lines that  may be declared Sensitive).  Where verifiable 
domestic consumption data exists for those tariff lines, the amount of the tariff quota access to be 
provided for them shall be the defined percentage of that domestic consumption figure for those tariff 
lines.  Where verifiable domestic consumption data does not exist for those tariff lines at the time of 
adoption of these Modalities, the following fou r-step method of calculation shall apply: 
(a) Step 1: 6-digit level:  [Where domestic cons umption data exists aligned to the 6-digit 
tariff level, it shall be used.  The supporting data shall be supplied and verified in the 
commonly-agreed supporting data template.]  Where that data does not exist already 
at the 6-digit level, a proxy shall be used  as follows.  The value of world trade for a 
given 6-digit tariff line shall be expressed as a percentage of total world trade for the 
whole product category within which that 6-dig it tariff line exists.  That percentage is 
applied to the particular Member's to tal domestic consumption of that product 
category to give the domestic consumption figure at the 6-digit level.  The supporting 
allocation data shall be supp lied and verified in the commonly-agreed supporting data 
template.3 
                                                        
1  For the purpose of these modalities, these products are those specified and delimited in terms of each 
product’s 6-digit tariff line coverage in the agreed Attachment. 
2 For the purpose of these modalities, these products are those specified and delimited in terms of each 
product’s 6-digit tariff line coverage in the agreed Attachment. 
3 This allocation template aligns with the products specified in the attachment and functions to assign the 
domestic consumption (proxies) for the products concerned.  TN/AG/W/4/Rev.1 
 Page 35 
 
 
  Where this product consumption data is available from recognized international 
sources such as FAO or OECD, it shall be used.  If it is not available, or if existing national sources provide more updated and accura te data, that shall be used.  In the 
calculation of domestic consumption at th at product category level, all domestic 
consumption must be included in the calculation, whether for direct human consumption, industrial use, animal feed, etc.  This data shall be provided in a 
transparent manner in a commonly-agreed supporting template for the data.  Where 
this data does not currently exist at a nati onal level, it shall be arrived at through a 
balance sheet approach (i.e. imports + produc tion – exports +/- changes in stocks).  
Calculations shall also be provided in a transparent manner using a commonly-agreed supporting data template.
4 
(b) Step 2: 8-digit level:  Where domestic consum ption data exists aligned to the 8-digit 
tariff level [for all the Members taking sen sitive product status for the 8-digit lines 
concerned], it shall be used.  The supporti ng data shall be supplied and verified in a 
commonly-agreed template.  Where that data does not exist already aligned to the 8-
digit level, a proxy shall be used.  At the national level, the share of value of imports for any 8-digit tariff line within a 6-digit h eading shall then be applied to the estimate 
of (or actual, if available) 6-digit consum ption figure determined in Step 1 above to 
derive a proxy for domestic consumption at the 8-digit level. 
(c) Step 3: base TQ calculation:  The tariff quota expansion is determined by applying 
the defined percentage expansion to the 8-digit level domestic consumption figure 
arrived at under Step 2 above. 
(d) Step 4: adjustment to base TQ calculation:   The application of this proxy approach 
can have the effect of further and artificially accentuating low trade allocation to tariff lines which have been low traded precisel y because they have been subject to 
relatively higher tariff restraint within th e coverage of the product concerned.  In 
order to offset this disproportionate effect, there shall be a safety-net provision whereby, as an absolute minimum, [for each  product in its entirety as specified in the 
attachment there shall be a floor minimum access of at least [1] [3] per cent of domestic consumption of that product] [and ] [a proportionality principle shall apply 
whereby the tariff quota expansion amount sha ll be calculated as the percentage of 
the number of 8-digit tariff lines within any given product declared as Sensitive applied to the domestic consumption figure fo r that product in its entirety] [,with the 
greater of the two applicable]. 
4. Where there are separate tariff lines for in- quota and out-of-quota trade, they shall be 
combined and treated as one tariff line under this approach. 
5. Where there are separate tariff lines that do not  reflect material differences in essential 
product characteristics (e.g. reflecting superficial di fferences such as packaging; end use requirements 
such as distinguishing personal use from other uses; or  other administrative distinctions) they shall be 
combined and treated as one tariff line under this approach. 
6. Imports for re-export (including where the obligati on to re-export is in a processed form) shall 
not be counted as "imports" under that tariff line under this approach. 
                                                        
4 Idem . TN/AG/W/4/Rev.1 
Page 36  
 
  7. Under whichever of these approaches is selected: 
(a) The calculations shall have been made av ailable to all Members with a sufficient 
period for them to have reviewed and verified them so that, at the time of the 
adoption of these Modalities, Members shall be in a position to know precisely what 
the actual volume of tariff quota expansion sh all be at a tariff line level, should a 
product be subsequently declared as Sensitive.   The results of these calculations, as 
reflected in the templates and attachments, are an integral part of these modalities.  
As such, only products in respect of whic h the agreed calculations are annexed shall 
be eligible for sensitive product treatment and, where such a product is in fact 
selected subsequently as sensitive at the scheduling stage, the results of these 
calculations shall be, for whatever product is  concerned, applicable without variation. 
(b) Existing scheduled tariff lines shall be the b asis for all calculations.  There shall be no 
sub-categorization of tariff lines beyond existing scheduled commitments. 
(c) The base period shall be the most recent pe riod for which data is available, i.e. 2003-
05 unless this would be, for some particular product, a manifestly unrepresentative 
period due to exceptional circumstances. 
8. For any given product category, [a single tariff quota with a single in-quota tariff shall be 
scheduled, irrespective of how many tariff lines ar e designated as Sensitive] [a maximum of [two] 
tariff quotas shall be scheduled for any given pr oduct category within which there are Sensitive 
Products, but only where, for the distinct tariff lines c oncerned, there is a differential margin of more 
than [x] per cent in the import unit values of the ta riff lines concerned.  All the tariff lines below that 
threshold would go into the first tariff quota, and a ll the tariff lines above that threshold would go into 
the second tariff quota]. 
9. New tariff quota volumes arising from this negotia tion shall be bound in part I-B of Members' 
Schedules of concessions on a most favoured nation basis. Pre-existing bound tariff quota 
commitments shall be maintained separately. 
.   TN/AG/W/4/Rev.1 
 Page 37 
 
 
  ANNEX D (TO BE FINALIZED) 
 
TARIFF ESCALATION PROVI SIONAL POTENTIAL LIST  
 
The following list is not finalized.  It may be added to or diminished. 
Vegetables  
 
 
Fruits and Nuts  
 
Primary product Processed product 
0801.11 - Coconuts, dessicated 
0801.19 - Coconuts, excluding dessicated 1513.11 - Crude coconut oil  
 
1513.19 - Other coconut oil   2306.50 - Oilcake and other solid residues of coconut  
2308 - Vegetable materials and vegetable waste
 
0805.50 - Lemons 2007.91 - Citrus fru it preparations; Jams, fruit jellies, 
marmalades, fruit or nut puree, and fruit or nut pastes, 
obtained by cooking, whether or not containing added sugar or other sweetening matter.
 
 2009.31 - Juice of any other citrus fruit (other than 
orange or grapefruit); of a Brix value lower or similar 
to 20). Primary product Processed product 
0702.00 – Tomatoes, fresh or chilled 2002.10 – Tomatoes, whole or in pieces, prepared 
or preserved otherwise than by vinegar or acetic 
acid. 
 2002.90 – Tomatoes, prepared or preserved 
otherwise than by vinegar or acetic acid. 
 
2009.50 – Tomato juice, unfermented and not 
containing added sugar or other sweetening matter. 
 2103.20 - Tomato ketchup and sauce 
0707.00 Cucumbers and gherkins, fresh or 
chilled 0711.40 - Cucumbers and gherkins provisionally 
preserved 
 2001.10 - Cucumbers and gherkins prepared or 
preserved by vinegar or acetic acid 
0709.60 - Fruits of the genus Capsicum or genus 
Pimenta 0904.20 - Fruits of the genus Capsicum or genus 
Pimenta, dried or ground 
0714.10 - Cassava 1108.14 - Cassava starch TN/AG/W/4/Rev.1 
Page 38  
 
  Primary product Processed product 
0808.20 – Pears and quinces, fresh 2008.40 – Pe ars, Otherwise prepared or preserved. 
 2009.80 - Juice of any single fruit  or vegetable (other than juice of any single citr us fruit, pineapple, tomato, 
grape, or apple) unfermented and not containing 
added spirit, whether or no t containing added sugar or 
other sweetening matter 
0809.10 – Apricots, fresh 2008.50 – Aprico ts, Otherwise prepared or preserved. 
0809.20 - Cherries, fresh 0812.10 - Cherries, provisionally preserved. 
 2008.60 - Cherries, otherwise prepared or preserved. 
0809.30 – Peaches, including nectarines, fresh 2008 .70 – Peaches including nectarines, otherwise 
prepared or preserved. 
0809.40 - Plums 0813.20 - Prunes, dried 
 
Coffee  
 
Primary product Processed product 
0901.11 - Coffee, not roasted: Not 
decaffeinated 0901.12 – Coffee, not roasted, decaffeinated 
 0901.12 – Coffee, not roasted, decaffeinated  
0901.21 - Coffee, roasted: Not decaffeinated 
 0901.22 - Coffee, roasted: Decaffeinated  0901.90 - Other (Coffee husks and skins, coffee 
substitutes containing coffee) 
 2101.11 - Extracts, essences and concentrates  2101.12 - Preparations with a basis of extracts, 
essences or concentrates or with a basis of coffee 
 
Spices  
 
Primary product Processed product 
0910.10 - Ginger 2006.00 - Other fruits , vegetables and nuts, preserved 
by sugar 
 2008.99 - Other fruits and edible parts of the plant, prepared or preserved 
  TN/AG/W/4/Rev.1 
 Page 39 
 
 
  Oilseeds  
 
Primary product Processed product 
12.01 - Soya Beans, whether or not broken 1208.10 - Flours and meals of soya bean 
 
1507.10 - Crude oil, whether or not degummed, of 
soya bean oil and its fractions, not chemically modified.  1507.90 – Refined oil of soybeans and its fractions, 
but not chemically modified. 
 23.04 - Oil cakes of soybeans 
1202.10 - Ground-nuts, in shell, not roasted or otherwise cooked 1202.20 - Ground-nuts, shelled, whether or not 
broken, not roasted or otherwise cooked  1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard 
 1508.10 - Crude Ground-nut oil , not chemically modified  
1508.90 - Refined Ground-nut oil, not chemically 
modified  2008.11 – Ground nuts, otherwise prepared or preserved, whether or not containing added sugar or 
other sweetening matter or spirit, not elsewhere 
specified or included. 
 23.05 - Oilseed cake of ground nuts 
1205.10 - Low erucic acid rape or colza seeds, whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard  1514.11 - Low erucic acid rape or colza oil, crude, not 
chemically modified. 
 1514.19 - Low erucic acid rape or colza oil, refined, not chemically modified.  
2306.41 - Of low erucic acid rape or colza seed 
1205.90 - Rape or colza seeds, whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard 
 1514.91 - Crude rape, colza or mustard oil and fractions thereof, not chemically modified.  1514.99 - Refined rape, colza or mustard oil and 
fractions thereof, not chemically modified, Other TN/AG/W/4/Rev.1 
Page 40  
 
  Primary product Processed product 
12.06 - Sunflower seeds, whether or not 
broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard  1512.11 - Crude sunflower-seed or safflower oil and 
fractions thereof, not chemically modified. 
 1512.19 - Refined sunflower-seed or safflower oil and fractions thereof, not chemically modified.  
2306.30 - Oilseed cake of sunflower seeds 
1207.60 - Safflower seeds 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard 
 1512.11 - Crude sunflower-seed or safflower oil and fractions thereof, not chemically modified.    
1512.19 - Refined sunflower-seed or safflower oil and 
fractions thereof, not chemically modified. 
1207.10 – Palm nuts and kernels, whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard  1511.10 - Crude palm oil and its refractions, not chemically modified oil 
 
1511.90 – Refined palm oil and its refractions, not chemically modified Other  2306.60 - Oilseed cake of palm nuts or kernels 
1207.20 - Cotton seeds, whether or not broken 12.08. 90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard  
1512.21 - Crude cotton-seed oil and its fractions, 
whether or not gossypol has been removed, not chemically modified  1512.29 - Refined cotton-seed oil and its fractions, not 
chemically modified 
 1521 - Vegetable waxes (of cotton)  2306.10 - Oilseed cake of cotton seeds 
1207.40 - Sesamum seeds 12.08.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard 
 
1515.50 - Sesame oil and its fractions  2306.90 - Oilseed cake, not otherwise specified 
 
 [Refer to other proposals which remain on the table]  TN/AG/W/4/Rev.1 
 Page 41 
 
 
  ANNEX E 
 
TARIFF QUOTA UNDERFILL MECHANISM 
 
 
1. [During the first monitoring year, where an im porting Member does not notify the fill rate, or 
where the fill rate is below [x per cent], a Me mber may raise a specific concern regarding a tariff 
quota commitment in the Committee on Agriculture and place this concern on a tracking register 
maintained by the Secretariat. The importing Me mber shall discuss the administration of the tariff 
quota with all interested Members, with the aim of  understanding the concerns raised, improving the 
membership's understanding of the market circum stances and of the manner in which the tariff quota 
is administered and whether elements of the administration contribute to underfill. 
2. Once the underfill mechanism has been initiated, where the fill rate remains below [x per 
cent] for two consecutive years, or no notification has been submitted for that period, a Member may 
request, through the Committee on Agriculture, that  the importing Member takes specific action(s)1 to 
modify the administration of the tariff quota concerne d.  The importing Member shall take either the 
specific action(s) requested or, drawing on the discussions previously held with the importing 
Member, such other action(s) which it considers will effectively improve the fill rate of the tariff 
quota. If the action(s) of the importing Member lead to a fill rate above [x per cent] this will be noted 
and the concern marked "resolved" on the Secretariat' s tracking register.  While the fill rate remains 
below [x per cent], a Member may continue to requ est additional modifications to the administration 
of the tariff quota. 
3. During the third and subsequent monitoring years :  following three or more consecutive years 
of underfill, where: 
(a) the fill rate remains below [x pe r cent] for three consecutive years ; and 
(b) the fill rate has not increased by annual increm ents of at least [y per cent] for each of 
the preceding three years; and 
(c) a Member makes a statement in the Co mmittee on Agriculture that it wishes to 
initiate the final stage of the underfill mechanism. 
4. The importing Member shall then promptly provide unencumbered access via one of the 
following tariff quota administration methods: a first-come, first-served only basis (at the border); or 
an automatic, unconditional license on demand system .  In taking a decision on which of these two 
options to implement, the importing Member will c onsult with interested exporting Members.  The 
method selected shall be maintained by the importi ng Member for a minimum of two years, after 
which time – provided that timely notifications fo r the two years have been submitted – it will be 
noted on the Secretariat's tracking regi ster and the concern marked "closed". ] 
                                                        
1 The actions and remedies taken by the importing Member pursuant to the underfill mechanism shall not 
impede the rights of a Member holding a country-specific allocation for that tariff quota with respect to their country-specific allocation. TN/AG/W/4/Rev.1 
Page 42  
 
  ANNEX F 
 
ILLUSTRATIVE LIST OF INDICATORS FOR THE 
DESIGNATION OF SPECIAL PRODUCTS 
  1. The product is a staple food, or is a part of the basic food basket of the developing country 
Member through, inter alia , laws and regulations, including administrative guidelines or 
national development plan or policy or hist orical usage, or the product contributes 
significantly to the nutritional or caloric intake of the population. 
 2. A significant proportion of the domestic c onsumption of the product in its natural, 
unprocessed or processed form, in a particular re gion or at a national level, is met through 
domestic production in the developi ng country Member concerned. 
 
3. Domestic consumption of the product in the developing country Member is significant in 
relation to total world exports of that product; or a significant proportion of total world exports of the product are accounted fo r by the largest exporting country. 
 
4. A significant proportion of the total domestic production of the product in a particular region 
or at the national level is produced on farm s or operational land holdings of up to and 
including 10 hectares, or is produced on farm or operational land holdings which are of a size 
equal to or less than the average farm size of the developing country Member concerned, or a 
significant proportion of the farms or operati onal land holdings producing the product are up 
to and including 10 hectares in size or of the average farm size or less of the developing 
country Member concerned. 
 5. A significant proportion of the total agricultural population or rural labour force, in a 
particular region or at the national level, is  employed in the production of the product. 
 
6. A significant proportion of the producers of the product, in a particular region or at the 
national level, are low income, resource poor, or  subsistence farmers, including disadvantaged 
or vulnerable communities and women or a si gnificant proportion of the domestic production 
of the product is produced in disa dvantaged regions and areas including, inter alia,  drought-
prone or hilly or mountainous regions. 
 
7. A significant proportion of the total value of ag ricultural production or agricultural income of 
households, in a particular region or at the na tional level, is derived from the production of 
the product. 
8. A relatively low proportion of the product is  processed in the developing country Member as 
compared to the world average; or the product contributes a relatively high proportion to 
value addition in the rural areas, in a particular  region or at the national level, through its 
linkages to non-farm rural economic activities, in cluding handicrafts and cottage industries or 
any other form of rural value addition. 
 9. A significant proportion of the agricultural cu stoms tariff revenue is derived from the product 
in a developing country Member. 
 10. A significant proportion of the total food expendi ture, or of the total income, of households in 
a particular region or at the national level in  the developing country Member concerned, is 
spent on the product. 
  TN/AG/W/4/Rev.1 
 Page 43 
 
 
  11. The product in respect of which product specific AMS or blue box support has been notified 
by any WTO Member and which has been exported by that notifying Member during any year from 1995 to the starting date of the implementation of Doha Round. 
 
12. The productivity per worker or per hectare of the product in the developing country Member, 
in a particular region or at the national level,  is relatively low as compared to the average 
productivity in the world. TN/AG/W/4/Rev.1 
Page 44  
 
  ANNEX G 
 
[LIST OF TROPICAL AND ALTERNATIVE PRODUCTS] 
 
HS96 Description 
060240 Roses, grafted or not 
060290 Live plants, incl. their roots, and mushroom spawn 
060310 Cut flowers and flower buds for bouquets, etc., fresh 
060390 Cut flowers and flower buds for bouquets, dried, etc. 
060491 Foliage, branches, for bouquets, etc. – fresh 
060499 Foliage, branches, for bouquets, etc. – except fresh 
070190 Potatoes, fresh or chilled except seed 
070310 Onions and shallots 
070960 Peppers (Capsicum, Pimenta) fresh or chilled 
070990 Vegetables, fresh or chilled nes 
071190 Other vegetables;  mixtures of vegetables 
071390 Other dried leguminous vegetables 
071410 Manioc (cassava), fresh or dried 
071420 Sweet potatoes 
071490 Arrowroot, salep, etc. fresh or dried and sago pith 
080111 Desiccated coconuts 
080119 Other coconuts 
080290 Nuts, fresh or dried, whether or not shelled or peeled 
080300 Bananas, including plantains, fresh or dried 
080420 Figs, fresh or dried 
080430 Pineapples, fresh or dried 
080440 Avocados, fresh or dried 
080450 Guavas, mangoes and mangosteens, fresh or dried 
080510 Oranges, fresh or dried 
080520 Mandarin, clementine & citrus hybrids, fresh or dried 
080530 Lemons and limes, fresh or dried 
080590 Other citrus fruit, fresh or dried 
080711 Watermelons, fresh 
080719 Melons, fresh 
080720 Fresh pawpaws "papayas" 
081090 Fresh tamarinds, passion fruit, carambola, pitahaya and other edible fruit 
081190 Fruits and nuts (uncooked, steamed, boiled) frozen 
081290 Fruit and nuts, provisionally preserved 
081340 Other fruit 
081350 Mixtures of nuts or dried fruits 
081400 Peel of citrus fruit or melons 
090112 Coffee, not roasted, decaffeinated 
090121 Coffee, roasted, not decaffeinated 
090122 Coffee, roasted, decaffeinated 
090190 Coffee, other roasted 
090210 Tea, green (unfermented) in packages < 3 kg 
090412 Pepper, crushed or ground 
090420 Capsicum or Pimenta, dried, crushed or ground 
090700 Cloves (whole fruit, cloves and stems) 
091010 Ginger 
100610 Rice in the husk (paddy or rough)  TN/AG/W/4/Rev.1 
 Page 45 
 
 
  HS96 Description 
100620 Husked (brown) rice 
100630 Semi-milled or wholly milled rice, whether or not polished or glazed 
100640 Broken rice 
110230 Rice flour 
110620 Flour, meal and powder of sago or of roots or tubers of heading 07.14 
110630 Flour, meal and powder of the dried leguminous vegetables  
110814 Manioc (cassava) starch 
120210 Ground-nuts in shell, not roasted or cooked 
120220 Ground-nuts, shelled, whether or not broken 
120890 Other flours and meals of oil seeds or oleaginous fruits 
121190 Plants & parts, pharmacy, perfume, insecticide use nes 
121210 Locust beans, locust seeds 
121299 Vegetable products nes for human consumption 
130219 Vegetable saps and extracts nes 
140190 Other vegetable materials 
150710 Crude soya-bean oil, and its fractions 
150790 Other soya-bean oil, and its fractions 
150810 Crude ground nut oil  
151110 Palm oil, crude 
151190 Palm oil or fractions simply refined 
151211 Crude sunflower-seed or safflower oil and fractions thereof 
151219 Other sunflower-seed or safflower oil and fractions thereof 
151311 Crude coconut (copra) oil and its fractions 
151319 Other coconut (copra) oil and its fractions 
151321 Crude palm kernel or babassu oil  
151329 Palm kernel or babassu oil and fractions thereof, other 
151410 Low erucic acid rape or colza oil, crude 
151490 Low erucic acid rape or colza oil, other 
151530 Castor oil and its fractions 
151550 Sesame oil or fractions not chemically modified 
151620 Veg fats, oils or fractions hydrogenated, esterified 
151710 Margarine, excluding liquid margarine 
152190 Beeswax, other insect waxes and spermaceti 
170111 Raw sugar, cane 
170191 Containing added flavouring or colouring matter 
170199 Refined sugar, in solid form, nes, pure sucrose 
170310 Cane molasses 
180310 Cocoa paste, not defatted 
 180320 Cocoa paste, wholly or partly defatted 
180400 Cocoa butter, fat, oil 
180500 Cocoa powder, unsweetened 
180610 Cocoa powder, sweetened 
  1806201 Chocolate and other food preps containing cocoa > 2 kg 
180631 Chocolate, cocoa preps, block, slab, bar, filled, > 2kg 
180632 Chocolate, cocoa prep, block/slab/bar, not filled, > 2kg 
  1806902 Chocolate/cocoa food preparations  
200190 Veg, fruit, nuts nes prepared or preserved by vinegar 
                                                        
1 Excluding more disaggregated lines which have a majority of their ingredients which are not tropical or 
alternative products. 
2 Excluding more disaggregated lines which have a majority of their ingredients which are not tropical or 
alternative products. TN/AG/W/4/Rev.1 
Page 46  
 
  HS96 Description 
200410 Potatoes, prepared, frozen 
 
  
[INDICATIVE LIST OF TROPICAL PRODUCTS USED IN THE URUGUAY ROUND] 
 
 PRODUCT GROUPS AND SUB-GROUPS 4-DIGIT HS HEADINGS  
   
Group I: Tropical beverages  
(a) Unprocessed products 0901, 0902, 1801, 1802 
(b) Semi-processed and processed products 1803, 1804, 1805, 2101 
   
Group II: Spices, flowers and plan ts, plaiting products, etc.  
(a) Unprocessed products 0904-0910, 0602, 0603, 1211, 1301, 
1401, 1402, 1403, 1404 
(b) Semi-processed and processed pr oducts 1302, 1521, 3203, 3301, 4601, 4602, 
9601 
   
Group III: Certain oilseeds, vegetable oils and products thereof  
(a) Unprocessed products and residues from oil extraction 1202, 1203, 1207, 2305, 2306 
(b) Semi-processed and processed pr oducts 1208, 1508, 1511, 1513, 1515, 1516, 
1518, 1519, 1520 
   
Group IV: Tropical roots, rice and tobacco  
(a) Unprocessed products 0714, 1006, 2401 
(b) Semi-processed and processed products 1106, 1108, 1903, 2402 
   
Group V: Tropical nuts and fruits  
(a) Unprocessed products 0801, 0803, 0804, 0807 
(b) Semi-processed and processed products 2006, 2007, 2008 
   
Group VI: Rubber and tropical wood  
(a) Raw material 4001, 4403 
(b) Semi-manufactures 4005-4009, 4407-4410, 4412 
(c) Finished products 4011, 4013-4017, 4414, 4418-4421, 
9401, 9403 
   
Group VII: Jute and hard fibres  
(a) Raw material 5303, 5304, 5305 
(b) Semi-manufactures 5307, 5308, 5310, 5311 
(c) Finished products 5607, 5608, 5609, 5905, 6305 
  TN/AG/W/4/Rev.1 
 Page 47 
 
 
  ANNEX H 
 
[INDICATIVE LIST OF PREFERENCE EROSION PRODUCTS] 
 
 
Tariff Lines 
at HS 6 Product Description 
020130 Fresh or chilled bovine meat, boneless 
020230 Frozen, boneless meat of bovine animals 
020312 Fresh or chilled hams, shoulders and cu ts thereof of swine, with bone in 
060310 Fresh cut flowers and flower buds, fo r bouquets or for ornamental purposes 
070200 Tomatoes, fresh or chilled 
070810 Fresh or chilled peas "Pisum sativum", shelled or unshelled 
070820 Fresh or chilled beans "Vigna spp., Phaseolus spp.", shelled or unshelled 
070990 Fresh or chilled vegetables (excl. potatoe s, tomatoes, vegetables of the Allium) 
071490 Roots and tubers of arrowroot, salep, Jerusalem artichokes and similar roots and tubers with high 
starch or inulin content, fresh, chilled, frozen or drie d, whether or not sliced or in the form of pellets 
and sago pith (excl. manioc "cassava") 
080290 Other nuts, fresh or dried, other 
080300 Bananas, incl. plantains, fresh or dried 
080430 Fresh or dried pineapples 
080440 Avocados 
080450 Fresh or dried guavas, mangoes and mangosteens 
080610 Fresh grapes 
080719 Fresh melons (excl. watermelons) 
080720 Fresh pawpaws "papayas" 
081090 Fresh tamarinds, cashew apples, jackfruit, lychees , sapodillo plums, passion fruit, carambola, 
pitahaya and other edible fruit (excl. nuts, bana nas, dates, figs, pineapples, avocadoes, guavas, 
mangoes, mangosteens, papaws "papayas", citrus fruit, grapes,  
081340 Dried peaches, pears, papaws "papayas", tamarinds and other edible fruits (excl. nuts, bananas, 
dates, figs, pineapples, avocadoes, guavas, man goes, mangosteens, citrus fruit, grapes apricots, 
prunes and apples, unmixed) 
090121 Roasted coffee (excl. decaffeinated) 
090500 Vanilla 
090700 Cloves, whole fruit, cloves and stems 
100620 Husked or brown rice 
110313 Cereal groats meal and pellets; of maize 
121210 Locust beans, incl. locust bean seed, fresh, chilled, frozen or dried, whether or not ground 
150810 Crude ground-nut oil 
151190 Palm oil and its fractions, whether or not re fined (excl. chemically modified and crude) 
151311 Crude coconut oil 
151321 Crude palm kernel and babassu oil 
151590 Fixed vegetable fats and oils and their fractions, wh ether or not refined, but not chemically modified 
(excl. soya-bean, ground-nut, olive, palm, sunflo wer-seed, safflower, cotton-seed, coconut, palm 
kernel, babassu, rape, colza and mustard, linseed, maize 
170111 Raw cane sugar (excl. added flavouring or colouring) 
170199 Cane or beet sugar and chemically pure sucrose, in solid form; other 
180310 Cocoa paste (excl. defatted) 
180400 Cocoa butter, fat and oil 
190590 Bread, pastry, cakes, biscuits and other bakers' wa res, whether or not containing cocoa; communion 
wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and 
similar products (excl. crispbread, gingerbread and the like 
200590 Preparation of vegetables, mixtures TN/AG/W/4/Rev.1 
Page 48  
 
  Tariff Lines 
at HS 6 Product Description 
200820 Pineapples, prepared or preserved, whether or not containing added sugar or other sweetening matter 
or spirit, n.e.s. 
200830 Citrus fruit, prepared or preserved, whether or  not containing added sugar or other sweetening 
matter or spirit, n.e.s. 
200860 Cherries, prepared or preserved, whether or not  containing added sugar or other sweetening matter 
or spirit (excl. preserved with sugar but not laid in syrup, jams, fruit jellies, marmalades, fruit purée 
and pastes, obtained by cooking) 
200899 Fruits and nuts, other 
200911 Frozen orange juice, unfermented, whether or not containing added sugar or other sweetening matter 
or spirit, n.e.s. 
200939 Single citrus fruit juice, unfermented, Brix value > 20 at 20°C, whether or not containing added 
sugar or other sweetening matter 
200979 Apple juice, unfermented, Brix value > 20 at 20°C, whether or not containing added sugar or other 
sweetening matter (excl. containing spirit) 
200980 Juice of fruit or vegetables, unfermented, whether or not containing added sugar 
210320 Tomato ketchup 
210390 Sauces, other 
220710 Beverages, spirits and vinegar;  Undenatures ethyl alcohol 
220840 Rum and tafia 
220890 Ethyl alcohol of an alcoholic strength of < 80% vol, not denatured; spirits and other spirituous 
beverages (excl. compound alcoholic preparations of a kind used for the manufacture of beverages, 
spirits obtained by distilling grape wine or grape marc) 
230990 Preparations of a kind used in animal feedi ng (excl. dog or cat food put up for retail sale) 
240110 Tobacco, unstemmed/unstripped 
240120 Tobacco, partly or wholly stemmed/ stripped, otherwise unmanufactured 
240130 Tobacco refuse 
240210 Cigars, cheroots and cigarillos containing tobacco 
 
 
  TN/AG/W/4/Rev.1 
 Page 49 
 
 
  ANNEX I 
SMALL, VULNERABLE ECONOMIES 
 
 
1. The data are based on the methodology that was used to prepare a previous Secretariat paper 
on shares of WTO Members in world non-agricultural trade, 1999-2004 (TN/MA/S/18).  Individual 
Members' data were extracted from the United Na tions Comtrade database on 6 June 2007.  World 
export and import totals, excluding significant re-exports were taken from the Secretariat's 
International Trade Statistics Report 2006.  This time period has been updated to 2000-2005 and a 
c.i.f.-f.o.b. adjustment has been applied to worl d exports by commodity group to derive respective 
world imports, but this does not change the overall results.1  The country averages are calculated on 
the basis of the years for which data are available. 
2. A small, vulnerable economy is defined as one whose average share for the period 1999-2004 
(a) of world merchandise trade does not exceed 0.16  per cent and (b) of world NAMA trade does not 
exceed 0.10 per cent and (c) of world agricu ltural trade does not exceed 0.40 per cent. 
3. The attached table does not include those Me mbers that are defined as least-developed 
countries by the United Nations Economic and Social  Council and those Members for which no data 
are available. 
 
 
                                                        
1 C.i.f.-f.o.b. factors were estimated based on the ratio of imports to exports for a matched group of reporters 
in UN Comtrade.  World imports by commodity group were derived by applying these c.i.f.-f.o.b. factors to the 
WTO's world exports by commodity group and aligning the resu lting figures to the WTO's world total imports. Intra-
trade of the 25 EC member States was then subtracted from the totals.  
  TN/AG/W/4/Rev.1 
Page 50  
 Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non-agriculture (NAMA) 
trade (%) 
WTO Member Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports 
Worlda 100 100 100 100 100 100 100 100 100
Albania 0.019 0.008 0.029 0.050 0.008 0.087 0.017 0.008 0.026
Antigua and Barbuda 0.004 0.001 0.007 0.011 0.000 0.020 0.004 0.001 0.006
Armenia 0.015 0.010 0.019 0.040 0.018 0.060 0.013 0.010 0.016
Barbados 0.013 0.005 0.020 0.037 0.022 0.050 0.011 0.004 0.019
Belize 0.006 0.004 0.008 0.023 0.029 0.017 0.004 0.001 0.007
Bolivia 0.032 0.032 0.032 0.102 0.143 0.065 0.028 0.025 0.030
Botswana 0.057 0.061 0.053 0.075 0.030 0.116 0.056 0.065 0.048
Brunei Darussalam 0.050 0.078 0.025 0.029 0.000 0.056 0.053 0.086 0.023
Cameroon 0.036 0.038 0.035 0.112 0.140 0.087 0.032 0.032 0.032
Cuba 0.063 0.034 0.089 0.240 0.223 0.256 0.052 0.022 0.080
Dominica 0.002 0.001 0.002 0.007 0.005 0.008 0.001 0.001 0.002
Dominican Rep. 0.068 0.018 0.113 0.154 0.115 0.189 0.063 0.011 0.111
Ecuador 0.110 0.112 0.108 0.326 0.515 0.154 0.098 0.087 0.107
El Salvador 0.051 0.026 0.075 0.173 0.136 0.206 0.044 0.018 0.068
Fiji 0.014 0.010 0.018 0.047 0.055 0.040 0.012 0.007 0.017
FYR Macedonia 0.033 0.026 0.039 0.076 0.069 0.083 0.027 0.024 0.030
Gabon 0.031 0.046 0.017 0.026 0.004 0.046 0.032 0.051 0.015
Georgia 0.014 0.009 0.020 0.052 0.044 0.060 0.012 0.006 0.018
Ghana 0.057 0.044 0.067 0.221 0.302 0.144 0.047 0.027 0.063
Grenada 0.003 0.001 0.004 0.009 0.006 0.012 0.002 0.001 0.004
Guatemala 0.086 0.053 0.116 0.319 0.416 0.231 0.072 0.030 0.110
Guyana 0.010 0.009 0.010 0.037 0.052 0.024 0.008 0.007 0.010
Honduras 0.041 0.026 0.056 0.190 0.223 0.160 0.032 0.013 0.049
Jamaica 0.044 0.024 0.063 0.114 0.091 0.136 0.040 0.020 0.059
Jordan 0.079 0.052 0.104 0.198 0.120 0.269 0.071 0.049 0.092 
   TN/AG/W/4/Rev.1
 Page 51 Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non-agriculture (NAMA) 
trade (%) 
WTO Member Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports 
Kenya 0.052 0.037 0.065 0.215 0.314 0.126 0.041 0.019 0.062
Kyrgyzstan 0.011 0.010 0.012 0.029 0.032 0.026 0.010 0.009 0.011
Macao, China 0.049 0.049 0.048 0.055 0.013 0.093 0.050 0.053 0.046
Mauritius 0.037 0.032 0.041 0.096 0.102 0.090 0.034 0.028 0.038
Moldova 0.018 0.013 0.022 0.089 0.132 0.051 0.013 0.006 0.021
Mongolia 0.013 0.011 0.014 0.025 0.017 0.033 0.012 0.011 0.013
Namibia 0.030 0.030 0.029 0.072 0.073 0.070 0.028 0.028 0.027
Nicaragua 0.023 0.012 0.034 0.102 0.129 0.079 0.018 0.004 0.031
Panama 0.038 0.016 0.059 0.105 0.091 0.114 0.035 0.011 0.056
Papua New Guinea 0.032 0.042 0.023 0.070 0.086 0.056 0.030 0.040 0.022
Paraguay 0.032 0.022 0.042 0.173 0.280 0.077 0.023 0.005 0.040
Saint Kitts and Nevis 0.002 0.001 0.003 0.006 0.002 0.009 0.002 0.001 0.003
Saint Lucia 0.004 0.001 0.006 0.016 0.009 0.022 0.003 0.001 0.005
Saint Vincent and the Grenadines 0.002 0.001 0.003 0.011 0.009 0.012 0.002 0.000 0.003
Sri Lanka 0.102 0.092 0.112 0.249 0.284 0.217 0.095 0.081 0.107
Suriname 0.009 0.009 0.011 0.017 0.007 0.027 0.009 0.009 0.010
Swaziland 0.019 0.018 0.019 0.068 0.082 0.056 0.015 0.014 0.016
Trinidad and Tobago 0.086 0.102 0.071 0.086 0.072 0.098 0.088 0.107 0.071
Uruguay 0.047 0.044 0.050 0.209 0.333 0.096 0.037 0.025 0.048
Zimbabwe 0.037 0.037 0.039 0.151 0.280 0.067 0.030 0.021 0.037
 
Source: All data are from the United Nations Comtrade da tabase except for world tota ls, which are WTO estimates. 
a  Excludes intra-EC trade (25 member  States) and significant re-exports. TN/AG/W/4/Rev.1 
Page 52  
 
  ANNEX J 
 
POSSIBLE NEW ARTICLE TO REPLACE THE CURRENT ARTICLE 10.2 OF THE 
AGREEMENT ON AGRICULTURE 
 
EXPORT CREDITS, EXPORT CREDIT GUARANTEES OR INSURANCE PROGRAMMES 
 
Definition  
1. In addition to complying with all other ex isting export subsidy obligations under this 
Agreement and the other covered Agreements1, Members undertake not to provide export credits, 
export credit guarantees or insurance programmes othe rwise than in conformity with this Article. 
These export credits, export credit guarantees and insu rance programmes (hereinafter referred to as 
"export financing support") shall comprise: 
(a) direct financing support, comprising direct cr edits/financing, refinancing, and interest 
rate support; 
(b) risk cover, comprising export credit insurance or reinsurance and export credit 
guarantees; 
(c) government-to-government credit agreements  covering the imports of agricultural 
products exclusively from the creditor country under which some or all of the risk is 
undertaken by the government of the exporting country; and 
(d) any other form of governmental export credit support, direct or indirect, including 
deferred invoicing and forei gn exchange risk hedging. 
2. The provisions of this Article shall apply to ex port financing support pr ovided by or on behalf 
of the following entities, hereinafter referred to as "export financing entities", whether such entities 
are established at the national or at the sub-national level: 
(e) government departments, agencies, or statutory bodies; 
(f) any financial institution or entity engaged in export financing in which there is 
governmental participation by way of equi ty, provision of loans or underwriting of 
losses; 
(g) agricultural export state trading enterprises; and 
(h) any bank or other private financial, cred it insurance or guarantee institution which 
acts on behalf of or at the direction of governments or their agencies. 
                                                        
1 However, the second paragraph of item (k) of Annex I to the Agreement on Subsidies and Countervailing 
Measures (hereafter the "Illustrative List") shall not  be applicable in the case of agricultural products.  TN/AG/W/4/Rev.1 
 Page 53 
 
 
  Terms and Conditions 
 
3. Export financing support shall be provided in conformity with th e terms and conditions set out 
below. 
(a) Maximum repayment term:  the maximum repayment term for export financing support 
under this Agreement, this being the period beginning at the starting point of credit2 and 
ending on the contractual date of the final pa yment, shall be no more than 180 days. For 
developed country Members, this shall apply from the first day of implementation or the 
end of 2010, whichever comes first.  Existi ng contracts which have been entered into 
prior to the signature of this Agreement, are still in place, and are operating on a longer 
timeframe than that defined in the preceding sentence, shall run their course until the end 
of their contractual date, provided that they  are notified to the Committee on Agriculture. 
(b) Self-financing:   export credit guarantee, insuran ce and reinsurance programmes, and 
other risk cover programmes included within s ub-paragraphs 1(b) and (c) above shall be 
self-financing.  Where premium rates char ged under a programme over a previous [4] 
[5]-year rolling period are inadequate to cover the operating costs and losses of the 
programme during that same period , this shall, in and of itself, be sufficient to determine 
that the programme is not self-financing. In addition, and irrespective of whether these 
programmes conform with the requirements set  out in the preceding sentence, this does 
not exempt them from complying with any othe r provision of this Agreement or the other 
covered Agreements, including by reference to  the more generally formulated long-term 
operating costs and losses of a programme, not limited to a historical [4] [5] year period, under item (j) of the Illustrative List.  Where these programmes are found to constitute export subsidies within the meaning of item (j) of the Illustrative List, they shall also be 
deemed to be not self-financ ing under this Agreement. 
Special and Differential Treatment 
 
4. Developing country Members providers of expor t financing support shall be eligible to 
benefit from the following elements:  
(a) Maximum repayment terms :  the developing country Me mbers concerned shall have a 
phase-in period of three years after the first day of the implementation period or the end 
of 2013, whichever comes first, within which to fully implement the maximum 
repayment term of 180 days.  Th is shall be achieved as follows: 
(i) on the first day of implementation , the maximum repayment term for any new 
support entered into shall be 360 days;  
(ii) two years after implementation, the maximum repayment term for any new 
support to be entered into shall be 270 days;  
(iii) three years after implementation the maximum repayment term of 180 days shall 
apply.  
It is understood that where there are, after an y of the relevant dates, pre-existing support 
arrangements entered into under the limits est ablished in the sub-paragraphs (i)-(iii) 
above, they shall run their original term. 
                                                        
2 The "starting point of a credit" shall be no later than the weighted mean date or actual date of the arrival of 
the goods in the recipient country for a contract under which shipments are made in any consecutive six-month period. TN/AG/W/4/Rev.1 
Page 54  
 
  (b) Self-financing :  the self-financing period referred to  in paragraph 3(b) shall be [6][7.5] 
years for developing country Members. 
5. Least-developed and net food-importing developing  countries as listed in G/AG/5/Rev.8 shall 
be accorded differential and more favourable treatme nt comprising allowance for a repayment term in 
respect of them of 360 days for the acquisition of  basic foodstuffs.  However, should these Members 
face exceptional difficulties in financing normal le vels of commercial imports of basic foodstuffs 
and/or in accessing loans granted by multilateral and/ or regional financial institutions, they shall be 
accorded a repayment term of 540 days.     TN/AG/W/4/Rev.1 
 Page 55 
 
 
  ANNEX K 
 
POSSIBLE NEW ARTICLE 10 BIS OF THE AGREEMENT ON AGRICULTURE 
 
AGRICULTURAL EXPORTING STATE TRADING ENTERPRISES 
 
1. Members shall ensure that agricultural expor ting state trading enterprises are operated in 
conformity with the provisions specified below and, subject to these provisions, in accordance with 
Article XVII, the Understanding on the Interpretation of Article XVII and other relevant provisions of 
GATT 1994, the Agreement on Agriculture and other WTO Agreements. 
Entities 
2. For the purpose of the disciplines set out hereun der in this Article, an agricultural exporting 
state trading enterprise shall be any enterprise whic h meets the working definition provided for in the 
Understanding on the Interpretation of Article XVII of the GATT 1994.1  
Disciplines 
3. In order to ensure the elimination of trade-di storting practices with respect to agricultural 
exporting state trading enterprises as described above, Members shall: 
(a) eliminate, in parallel and in proportion to the elimination of all forms of export subsidies 
including those related to food aid and export credits: 
(i) export subsidies, defined by Article 1( e) of the Uruguay Round Agreement on 
Agriculture, which are currently provided, consistently with existing obligations 
under Article 3.3 of the Uruguay Round Agreement on Agriculture, to or by an agricultural exporting state trading enterprise; 
(ii) government financing of agricultural exporting state trading enterprises, 
preferential access to capital or other special  privileges with respect to government 
financing or re-financing facilities, bor rowing, lending or government guarantees 
for commercial borrowing or lending, at below market rates; and 
(iii) government underwriting of losses, either directly or indirectly, losses or 
reimbursement of the costs or write-downs or write-offs of debts owed to, or by 
agricultural exporting state trading enterprises on their export sales. 
(iv) [by 2013, the use of agricultural export monopoly powers for such enterprises.] 
(b) ensure that any use of agri cultural export monopoly powers by such enterprises is not 
exercised in a manner which, either de jure  or de facto  effectively circumvents the 
provisions set out in sub-para graphs (i) to (iii) above. 
                                                        
1 "Governmental and non-governmental enterprises, including marketing boards, which have been granted 
exclusive or special rights or privileges, including statutory or constitutional powers, in the exercise of which they 
influence through their purchases or sales the level or dir ection of imports or exports." It is understood that where 
there is reference to the "rights and privileges" that "influence … the level or direction of imports " in the preceding 
sentence, this matter of imports is not per se  a matter falling under the disciplines of this Article which relates, rather, 
solely to the matter of exports under that working definition. TN/AG/W/4/Rev.1 
Page 56  
 
  Special and differential treatment 
 
4. Notwithstanding paragraph [3(a)(iv)] above, ag ricultural exporting state trading enterprises in 
developing country Members which enjoy special pr ivileges to preserve domestic consumer price 
stability and to ensure food security shall be permitte d to maintain or use export monopoly powers to 
the extent that they would not be otherwise incons istent with other provisions of this Agreement and 
other WTO Agreements. 
5. Where a developing country Member has an agricultural exporting state trading enterprise 
with export monopoly powers, that enterprise may con tinue also to maintain or use those powers, 
even if the purpose for which that enterprise h as such privileges could not be deemed to be 
characterized by the objective: "to preserve domestic consumer price stability and to ensure food security".  Such an entitlement, however, would be  permissible only for such an enterprise whose 
share of world exports of the agricultural product or  products concerned is less than 5 per cent, such 
that the entity's share of world exports of the pro duct or products concerned does not exceed that level 
in three consecutive years, and to the extent that the exercise of those monopoly powers is not 
otherwise inconsistent with other provisions of this Agreement and other WTO Agreements. 
6. In any case, agricultural exporting state tr ading enterprises in least-developed country 
Members and Members, small, vulnerable economi es, whether or not they enjoy such special 
privileges to preserve domestic consumer price st ability and to ensure fo od security, shall be 
permitted to maintain or use monopoly powers for agri cultural exports to the extent that they would 
not be otherwise inconsistent with other provisi ons of this Agreement a nd other WTO Agreements. 
Monitoring and surveillance 
7. Any Member that maintains an agricultural exporting state trading enterprise shall notify to 
the Committee on Agriculture, on an annual basis, re levant information regarding the enterprise's 
nature and operations.  This w ill, consistent with standard WTO practice and normal commercial 
confidentiality considerations, requi re timely and transparent provision of information on any and all 
exclusive or special rights or privileges granted to such enterprises within the meaning of paragraph 1 
above sufficient to ensure effec tive transparency.  Memb ers shall notify any benefits, not otherwise 
notified under other WTO disciplines, that accrue to  a state trading export enterprise from any special 
rights and privileges including those that are of a fi nancial nature.  At the request of any Member, a 
Member maintaining a state trading export enterprise  shall provide, subject to normal considerations 
of commercial confidentiality, information request ed concerning the enterprise's export sales of 
agricultural products, the product exported, the volume  of the product exported, the export price and 
the export destination.  TN/AG/W/4/Rev.1 
 Page 57 
 
 
  ANNEX L 
 
POSSIBLE NEW ARTICLE 10.4 TO REPLACE THE CURRENT ARTICLE 10.4 OF THE 
AGREEMENT ON AGRICULTURE 
 
INTERNATIONAL FOOD AID 
 
1. Members reaffirm their commitment to maintain an adequate level of international food aid 
(hereinafter referred to as "food aid "1), to take account of the interests of food aid recipients and to 
ensure that the disciplines contained hereafter do not unintentionally impede the delivery of food aid 
provided to deal with emergency si tuations.  Members shall ensure that food aid is provided in full 
conformity with the disciplines below, thereb y securing the objective of preventing commercial 
displacement. 
General disciplines applicable to all food aid transactions 
 2. Members shall ensure that all food aid tran sactions are provided in conformity with the 
following provisions: 
(a) they are needs-driven; 
(b) they are in fully grant form; 
(c) they are not tied directly or indirectly to  commercial exports of agricultural products or 
of other goods and services; 
(d) they are not linked to the market development objectives of donor Members; and 
(e) agricultural products provided as food aid sha ll not be re-exported in any form, except 
where, for logistical reasons and in order to expedite the provision of food aid for another 
country in an emergency situation, such re-e xportation occurs as an integral part of an 
emergency food aid transaction that is itself ot herwise in conformity with the provisions 
of this Article. 
3. The provision of food aid shall take fully into account local market conditions of the same or 
substitute products.  Members shall refrain from pr oviding in-kind food aid in situations where this 
would cause, or would be reasonably foreseen to cause, an adverse effect on local or regional 
production of the same or  substitute products.
2  Members are encouraged to procure food aid from 
local or regional sources to the extent possible, provided that the availability and prices of basic 
foodstuffs in these markets are not unduly compro mised.  Members commit to making their best 
efforts to move increasingly towa rds more cash-based food aid. 
                                                        
1  Unless otherwise specified, the term food aid is used to refer to both in-kind and cash-based food aid 
donations. 
2 It is conceivable that there could be circumstances where strict application of this obligation would have 
the effect of acting as an unintended impediment to the capacity of Members to respond fully and effectively to genuine need with in-kind food aid in an emergency situation envisaged under paragraphs 6 to 10 below.  Therefore it is recognized that, in such an emergency situation, Members may be permitted to depart from the strict application of this obligation, but only and strictly to the extent that this is a necessary and unavoidable consequence of the nature of the emergency itself such that to act in strict conformity  would manifestly compromise the capacity of a Member to 
respond effectively to meet food aid needs.  Furthermore, a Me mber shall in any case be obliged to avoid or, if this is 
not possible in the circumstances, to minimize, any a dverse effects on local or regional production through the 
provision of in-kind food aid otherwise in conformity with the provisions of paragraphs 6 to 10 below. TN/AG/W/4/Rev.1 
Page 58  
 
  4. Untied cash-based food aid that is in conformity with the provisions of paragraph 2 above shall 
be presumed to be in conformity with this Article. 
5. The recipient government has a primary role  and responsibility for the organization, 
coordination and implementation of food  aid activities within its territory. 
Further disciplines for food aid transactio ns in emergency situations (Safe Box) 
 
6. To ensure that there is no unintended impe diment to the provision of food aid during an 
emergency situation, food aid provi ded under such circumstances (whether cash or in-kind) shall be in 
the ambit of the Safe Box and, therefore, deemed to  be in conformity with this Article, provided that: 
(a) there has been a declaration of an emerge ncy by the recipient country or by the 
Secretary-General of the United Nations; or 
(b) there has been an emergency appeal from a country, a relevant United Nations agency, 
including the World Food Programme and the United Nations Consolidated Appeals 
Process;  the International Committee of the Red Cross and the International Federation 
of Red Cross and Red Crescent Societies;  a relevant regional or international 
intergovernmental agency, a non-governmental humanitarian organization of recognized 
standing traditionally working in conjunction with the former bodies; and 
in either case, there is an assessment of need undertaken by a relevant United Nations agency, 
including the World Food Programme; the Inte rnational Committee of the Red Cross and the 
International Federation of Red Cross and Red Crescent Societies.3 
7. Following the emergency declaration or appeal as provided for in paragraph 6 above, there may 
well be a period where the needs assessment outcome is pending.  For the purposes of this Agreement, 
this period shall be deemed to be 3 months in dur ation.  Should any Member consider that the food 
aid concerned would fail to satisfy the conditions  provided for under paragraph 6 above, no initiation 
of dispute settlement on these grounds may occur until that period has elapsed (provided that the 
relevant United Nations agency res ponsible for the needs assessment has not, within this period, given 
a negative assessment).  Where, within or by the end of this period, the relevant UN agency has 
carried out a positive needs assessment and the other conditions of paragraph 6 have been satisfied, 
the food aid concerned shall remain in the Safe Box he reafter provided it is also in conformity with all 
the other relevant provisions of this Article. 
8. There shall be no monetization for food aid in side the Safe Box except for least-developed 
countries where there is a demonstrable need to do so for the sole purpose of transport and delivery.  
Such monetization shall be carried out solely with in the territory of the recipient least-developed 
country such that commercial displacement is a voided or, if not feasible, at least minimized. 
9. A notification will be required on an ex-post  basis by donor Members at six-month intervals in 
order to ensure transparency. 
                                                        
3 Needs assessment should be done with the involvement of the recipient government and may involve a 
relevant regional intergovernmental organization or an NGO, but while the latter bodies may be so involved, the relevant United Nations agency shall be responsible for the conduct of the needs assessment and its ultimate approval.  TN/AG/W/4/Rev.1 
 Page 59 
 
 
  10. Subject to its continued conformity with other pr ovisions of this Article, food aid that is in 
conformity with paragraph 6 may be provided as l ong as the emergency lasts subject to an assessment 
of continued genuine need as a result of the initia l onset of the emergency.  The relevant United 
Nations agency shall be responsible  to make such determination. 
Further disciplines for food aid transa ctions in non-emergency situations 
 
11. Further to the disciplines set out in paragraphs 1 to 5 above, in-kind food aid for consumption 
in non-emergency situations out side the Safe Box shall be: 
(a) based on a needs assessment carried out  by an international or regional 
intergovernmental organization, including the UN, which should involve the recipient 
country and which may involve humanitari an non-governmental organizations working 
in partnership with the recipient country; 
(b) provided to redress food deficit situations  which give rise to chronic hunger and 
malnutrition and, accordingly, such food aid shall be targeted to meet the nutritional 
requirements of identified food insecure groups; and 
(c) be provided consistently with the objective of preventing, or at the very least minimizing, 
commercial displacement.  Commercial displaceme nt in this context shall arise where the 
provision of in-kind food aid by a Member  materially displaces commercial transactions 
that would otherwise have occurred in or into a normally functioning market in the 
recipient country for the same product or directly competitive products. 
12. Monetization of in-kind food aid shall be [prohi bited.] permissible [solely where it is necessary 
to fund the transportation and delivery of f ood aid to least-developed and net food-importing 
developing country Members.  However, such mo netization shall only be carried out within the 
territory of the recipient least-developed or net food-importing developing country.4, 5  Additionally, 
commercial displacement shall be avoided or, if not feasible, at least minimized.][to fund activities 
that are directly related to the delivery of the f ood aid to developing country recipients, or for the 
procurement of agricultural inputs to low-income or resource-poor producers in developing countries]. 
Monitoring and surveillance 
 
13. Food aid donor Members shall be required to notify to the Committee on Agriculture, on an 
annual basis, the following data [  ].   
                                                        
4 In the case of a landlocked Member, additionally for the transit transport/delivery from the extra-territorial 
continentally contiguous port of final unloading to the destination territorial border.  
5 Where a Member seeks to provide food aid involving monetization not carried out as provided for under 
this provision, a written notification on th e proposed transaction (or programme of  transactions) shall be forwarded to 
a standing committee of experts and to the Committee on Agri culture. Such a notification shall specify in writing all 
the circumstances applicable including the rationale for the proposed transaction, all details of the proposed transaction and how it is proposed that commercial displ acement will be avoided or, if not possible, at least 
minimized. The standing committee of experts shall, within 14 days of the receipt of notification, invite submissions, to be received within 14 days, from other interested parties on the matter.  The standing committee of experts shall render its judgement on the proposed transaction within thirty days thereafter. Any proposed transaction shall be stayed pending that judgement, which shall be binding. 
 TN/AG/W/4/Rev.1 
Page 60  
 
  ANNEX M 
MONITORING AND SURVEILLANCE 
New Article 17 
 
Committee on Agriculture  
 
 A Committee on Agriculture is  hereby established.  The Committee shall carry out the 
functions necessary to implement the provisions of th is Agreement and the furtherance of its objectives, 
in particular with respect to: 
 
(i) monitoring Members' implementation of their scheduled and rule-based commitments 
in market access, domestic support and export competition under this Agreement; 
(j) providing Members with a regular forum for c onsultations with respect to the reform 
programme in agricultural trade within the framework of their commitments under 
this Agreement; 
(k) performing any other function connected with  this Agreement that the Council for 
Trade in Goods or a higher level body may determine; and 
(l) establishing any subsidiary body, peer, advisory group, or working party, as it may 
deem appropriate to perfo rm the above functions. 
 
 
New Article 18 
 
Monitoring and Surveillance  
 5. Progress in the implementation of commitments negotiated under the reform programme shall 
be reviewed by the Committee on Agriculture. 
6. For this purpose, the Committee on Agriculture shall elaborate comprehensive notification 
procedures as well as detailed upfront and annual information requirements to monitor Members' 
compliance with their scheduled and rule-based commitm ents under all the relevant  provisions of this 
Agreement.  These procedures shall be adopted by  the Committee within [one month] following the 
entry into force of the Agreement and shall be obs erved by all Members in a timely manner.  The 
least-developed country Members may delay complian ce with notification obligations for a period of 
[five] years.  Where such compliance is prevented by a lack of technical expertise or resources, the 
Secretariat shall provide the relevant technical assistance upon request to encourage compliance with 
notification requirements. 
7. The Committee shall review the operation of, and compliance with, the notification 
procedures after [three] years following the entry into  force of the Agreement, and thereafter as the 
need arises, with a view to make recommendations towards their improvement. 
8. The review process shall be undertaken by the Committee on Agriculture in formal meetings 
on the basis of notifications submitted by Members, and shall provide an opportunity for Members to 
raise any matter relevant to the implementation of commitments under the reform programme as set 
out in this Agreement.  The Committee shall encourage and facilitate ad hoc  consultations and thematic 
reviews among Members on specific matters of relevance to the reform programme.  TN/AG/W/4/Rev.1 
 Page 61 
 
 
  9. To enhance transparency, each Member shal l designate one enquiry point which is 
responsible for the provision of information to all reasonable questions from interested Members 
regarding trade policy matters and domestic agricultura l regulations that are within the scope of this 
Agreement, without requiring that Member to disclose confidential information. 
10. Any Member may bring to the attention of the Committee on Agriculture any measure which 
it considers ought to have been notified by another Member. 
11. In the review process, Members shall give due consideration to the influence of excessive 
rates of inflation on the ability of any Member to abide by its domestic support commitments. 
12. To assist the Committee in carrying out its monitoring and surveillance function, the 
Secretariat shall prepare any documentation that may be required to facilitate the review process, as 
well as an annual factual report on the operation of this Agreement based on notifications and other 
reliable information available to it. 
13. A more detailed set of provisions in respect of applicable procedures for notification, 
monitoring and surveillance under Committee authority shall be annexed (to be finalized).  [Member 
proposals, including new proposals just to hand, remain on the table for review.] 
__________